The net book value of motor vehicles of a company is shown.

beginning of
the year
end of the year
$312000
$305000

During the year, an old vehicle was traded in as part exchange for a new vehicle. The part exchange value of the old vehicle was $8000. The remaining purchase price of the new vehicle, $30000, was paid by cheque. What was the depreciation charge for the year?

Q: What topic does this question test?

This question tests Non-current Assets and Depreciation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2021 examination, Paper 1 Variant 2 (9706_m21_qp_12.pdf).

Question

The net book value of motor vehicles of a company is shown.

beginning of
the year
end of the year
$312000
$305000

During the year, an old vehicle was traded in as part exchange for a new vehicle. The part exchange value of the old vehicle was $8000. The remaining purchase price of the new vehicle, $30000, was paid by cheque. What was the depreciation charge for the year?

Oracle Prep · Accepted Answer

The correct answer is C: $45000.

✓ Correct Answer

📋 Examiner Report & Trap Analysis

🎯 Mark Scheme Breakdown

Unlock the Examiner's Analysis

About This A-Level Accounting Question

Topic

Source

Practice on Oracle Prep

Related Accounting Questions