A-LevelAccountingDepreciation and Disposal of Non-Current AssetsFeb/Mar 2018Paper 1 Q31 Mark
A motor vehicle was purchased for $12000 on 1 January 2015. Its estimated residual value was $7000 and expected life 5 years. Depreciation was calculated on a month-by-month basis using the straight-line method. It was sold on 30 June 2017 and there was a loss on disposal of $2560. What were the sale proceeds?
A$3440
B$4352
C$6440
D$6940
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of depreciation and disposal of non-current assets within the Accountingsyllabus. The examiner's mark scheme requires...
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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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