The following information relates to the motor vehicles of a business.

| | 1 January 2018 $ | 31 December 2018 $ |
|:---|:---|:---|
| net book value | 398 000 | 480 000 |

During 2018 the following occurred.
1 Additional motor vehicles costing $195000 were purchased.
2 A motor vehicle (original cost $80000) was sold for $24000 at a profit of $2000.
What was the depreciation charge for 2018?

Q: What topic does this question test?

This question tests Non-current Assets and Depreciation 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 2019 examination, Paper 1 Variant 2 (9706_s19_qp_12.pdf).

Question

The following information relates to the motor vehicles of a business.

| | 1 January 2018 $ | 31 December 2018 $ |
|:---|:---|:---|
| net book value | 398 000 | 480 000 |

During 2018 the following occurred.
1 Additional motor vehicles costing $195000 were purchased.
2 A motor vehicle (original cost $80000) was sold for $24000 at a profit of $2000.
What was the depreciation charge for 2018?

Oracle Prep · Accepted Answer

The correct answer is C: $91000.

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