A business depreciates its non-current assets at 20% using the straight-line method. Depreciation is calculated on a time basis in the year of acquisition and disposal.

$
non-current assets, at cost, 31 December 2013 200 000
purchase of machinery 1 January 2014 50000
disposal of machinery 30 September 2014 40000
non-current assets, at cost, 31 December 2014 210000

What is the depreciation charge for non-current assets for the year ended 31 December 2014?

Q: What topic does this question test?

This question tests Depreciation and Disposal of Non-Current Assets in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting May/June 2015 examination, Paper 1 Variant 2 (9706_s15_qp_12.pdf).

Question

A business depreciates its non-current assets at 20% using the straight-line method. Depreciation is calculated on a time basis in the year of acquisition and disposal.

$ 
non-current assets, at cost, 31 December 2013 200 000
purchase of machinery 1 January 2014          50000
disposal of machinery 30 September 2014       40000
non-current assets, at cost, 31 December 2014 210000

What is the depreciation charge for non-current assets for the year ended 31 December 2014?

Oracle Prep · Accepted Answer

The correct answer is B: $48000.

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