A car was purchased by a florist business in May 20W7 for: $ Cost 20,000 Road tax 300 Total 20,300 The business adopts a date of 31 December as its year end. The car was traded in for a replacement vehicle in August 20X0 at an agreed value of $10,000. It has been depreciated at 25% per annum on the reducing-balance method, charging a full year's depreciation in the year of purchase and none in the year of sale. What was the profit or loss on disposal of the vehicle during the year ended December 20X0? A Profit: $1,436 B Profit: $1,562 C Profit: $3,576 D Profit: $3,672
A car was purchased by a florist business in May 20W7 for: $ Cost 20,000 Road tax 300 Total 20,300 The business adopts a date of 31 December as its year end. The car was traded in for a replacement vehicle in August 20X0 at an agreed value of $10,000. It has been depreciated at 25% per annum on the reducing-balance method, charging a full year's depreciation in the year of purchase and none in the year of sale. What was the profit or loss on disposal of the vehicle during the year ended December 20X0? A Profit: $1,436 B Profit: $1,562 C Profit: $3,576 D Profit: $3,672
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...
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A car was purchased by a florist business in May 20W7 for:
$
Cost 20,000
Road tax 300
Total 20,300
The business adopts a date of 31 December as its year end.
The car was traded in for a replacement vehicle in August 20X0 at an agreed value of $10,000.
It has been
the year of purchase and none in the year of sale.
What was the profit or loss on disposal of the vehicle during the year ended December 20X0?
A Profit: $1,436
B Profit: $1,562
C Profit: $3,576
D Profit: $3,672
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