O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2013 · Q171 Mark

A machine was purchased for $100000 and depreciated by 20% per annum using the straight line method. Three years later it was sold for $25000. What was the profit or loss on sale?

A$15000 loss

B$25000 profit

C$26 200 loss

D$35000 profit

✓ Correct answer

A: $15000 loss

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2013 Paper 1 Variant 1, question 17.

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