O-LevelAccountingAccounting principles and policies7707/11 · May/June 2020 · Q351 Mark

Brad purchased a machine for $1000 on 1 January 2019. The machine was expected to last for four years and have no residual value. On 31 December 2019 the same machine cost $1200 to purchase. At which value should the machine be included in the statement of financial position on 31 December 2019?

Acurrent cost with no depreciation

Bcurrent cost with one year's depreciation

Coriginal purchase price with no depreciation

Doriginal purchase price with one year's depreciation

✓ Correct answer

D: original purchase price with one year's depreciation

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2020 Paper 1 Variant 1, question 35.

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Brad purchased a machine for $1000 on 1 January 2019. The machine was expected to last for four years and have no residual value. On 31 December 2019 the same machine cost $1200 to purchase. At which value should the machine be included in the statement of financial position on 31 December 2019?

✓ Correct answer

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