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?

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

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