A-LevelAccountingDepreciation and Non-Current AssetsMay/June 2016Paper 1 Q41 Mark

A building was purchased for $500000. The following costs were also incurred. $ adapting the new building 50000 legal fees for the building purchase 5000 cleaning the building 4000 salary of building manager 20000 What was the capital cost of the building?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is B: $555000.

Q: What topic does this question test?

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

A$550000

B$555000

C$559000

D$579000

✓ Correct Answer

The correct answer is B: $555000

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

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

Source

This question appeared in the Cambridge A-Level Accounting May/June 2016 examination, Paper 1 Variant 2.

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