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A-LevelAccountingAccounting for non-current assets9706/12 · May/June 2014 · Q61 Mark

On 1 June 2011, a company purchases machinery for $18000. The company depreciates machinery at 20% per annum using the reducing balance method. The machinery was sold on 1 June 2013 for $9400. What is the profit/loss on the disposal of the machinery?

Aloss $1400
Bloss $2120
Cprofit $1400
Dprofit $2120

✓ Correct answer

B: loss $2120

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About this question

Topic
Accounting for non-current assets, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, May/June 2014 Paper 1 Variant 2, question 6.

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