A-LevelAccountingAccounting for non-current assets9706/12 · Feb/Mar 2024 · Q71 Mark
A company purchased a machine on 1 April 2021 for $25 000. It was depreciated at 20% per annum using the straight-line method. A full year's depreciation is charged in the year of purchase but none in the year of sale. On 30 June 2023 the machine was sold for $12 500. The company's year end is 31 December. What was the profit or loss on the disposal of the machine?
A$1250 loss
B$1250 profit
C$2500 loss
D$2500 profit
✓ Correct answer
C: $2500 loss
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