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A-LevelAccountingAccounting for non-current assets9706/12 · Feb/Mar 2018 · 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

D: $6940

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About this question

Topic
Accounting for non-current assets, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Feb/Mar 2018 Paper 1 Variant 2, question 3.

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