O-LevelAccountingAccounting procedures7707/12 · May/June 2025 · Q151 Mark

On 1 January 2023, equipment was purchased for $50000. The equipment is expected to have a useful life of five years and a residual value of $10000. The straight-line method of depreciation is used. What was the balance on the provision for depreciation of equipment account on 31 December 2024?

A$8000

B$10000

C$16000

D$20000

✓ Correct answer

C: $16000

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2025 Paper 1 Variant 2, question 15.

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