A-LevelAccountingDepreciation and Non-Current AssetsMay/June 2016Paper 1 Q31 Mark
A business purchased a motor vehicle on 1 January 2012 for $24000. The estimated useful life of the motor vehicle was four years and the estimated residual value at the end of four years was $8000. The business depreciates motor vehicles at 25% per annum using the reducing balance method. No depreciation is charged in the year of disposal. The motor vehicle was sold on 31 July 2015 for $12000. What was the profit on the sale of the motor vehicle?
A$1875
B$4000
C$5250
D$8000
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of depreciation and non-current assets 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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