A-LevelAccountingAccounting for non-current assets9706/12 · Feb/Mar 2017 · Q31 Mark
During the year ended 31 December 2012 a business purchased a vehicle for $23500. On 30 September 2015 it was sold for $3500. Depreciation was charged at 20% per annum using the straight line method. A full year's depreciation was charged in the year of purchase and the year of disposal. What was the profit or loss on disposal of the vehicle?
A$1200 loss
B$1200 profit
C$5900 loss
D$5900 profit
✓ Correct answer
A: $1200 loss
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Accounting for non-current assets and see which topics are most likely to come up next.
Sign up free →