A-LevelAccountingDepreciation and Non-Current AssetsMay/June 2022Paper 1 Q21 Mark
A sole trader has changed the method of depreciating his machinery from the reducing balance method in the year 1 to the straight-line method in the year 2 of trading. The same percentage rate of depreciation is used in both cases. What is the effect on the net book value of machinery and profit for the year 2?
Anet book value: higher, profit for the year 2: higher
Bnet book value: higher, profit for the year 2: lower
Cnet book value: lower, profit for the year 2: higher
Dnet book value: lower, profit for the year 2: lower
✓ Correct Answer
The correct answer is D: net book value: lower, profit for the year 2: lower
📋 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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