A-LevelAccountingDepreciation and Non-Current AssetsFeb/Mar 2024Paper 1 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
The correct answer is C: $2500 loss
📋 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...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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