A-LevelAccountingAccounting for non-current assets9706/12 · Feb/Mar 2019 · Q31 Mark
A company purchased an asset costing $100000. It had a life of five years and an estimated residual value of $20000. The company uses straight-line depreciation. The asset was sold for $5000 at the end of the five-year period. What is the total effect on year five profits from both depreciating and selling the asset?
A1000
B15000
C16000
D31000
✓ Correct answer
D: 31000
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