O-LevelAccountingAccounting procedures7707/12 · May/June 2021 · Q181 Mark
A machine with an original cost of $10000 had been depreciated for two years at the rate of 10% per annum using the straight-line basis. It was then sold for cash with the loss on disposal amounting to $700. A replacement machine was bought on the same day for $12400 cash. What was the net decrease in the cash balance?
A$3700
B$5100
C$11700
D$13 100
✓ Correct answer
A: $3700
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