A-LevelAccountingDepreciation and Non-Current AssetsFeb/Mar 2019Paper 1 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
The correct answer is D. This question tests the candidate's understanding of depreciation and non-current assets within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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