A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2012 · Q181 Mark
A company uses the straight-line method of depreciation for all its non-current assets. On 1 January the company bought machinery on hire purchase. The cash price was $115 000 and the interest for the year is $19 550. The estimated useful life of the machinery is five years with no residual value. What is the charge for depreciation for the year ended 31 December?
A$19 090
B$23 000
C$26 910
D$42 550
✓ Correct answer
B: $23 000
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Accounting for non-current assets and see which topics are most likely to come up next.
Sign up free →