A-LevelAccountingNon-current Assets and DepreciationFeb/Mar 2022Paper 1 Q41 Mark
A business has a year end of 31 December. It purchased a non-current asset on 1 January 2020 for $100000. The asset was depreciated using the reducing balance method at 20% per annum. It was sold for $40000 on 1 January 2022. What was the loss on disposal?
A$20000
B$24 000
C$40000
D$60000
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of non-current assets and depreciation within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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