A-LevelAccountingNon-Current Assets and DepreciationFeb/Mar 2017Paper 1 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
The correct answer is A. 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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