O-LevelAccountingAccounting procedures7707/11 · May/June 2011 · Q141 Mark

A machine was purchased on 1 January 2010 for $12 000. It has a working life of 8 years after which it will be sold for $2000. Depreciation is calculated using the straight line method. What was the net book value at 31 December 2010?

A$10000

B$10500

C$10750

D$12000

✓ Correct answer

C: $10750

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2011 Paper 1 Variant 1, question 14.

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