Thursday, 6 August 2015

Cima C02 Exam Question No 19

Question No 19:

N purchased a machine for $15,000. The transportation costs were $1,500 and installation costs were $750. The machine broke down at the end of the first month in use and cost $400 to repair. N depreciates machinery at 10% each year on cost, assuming no residual value.
What is the net book value of the machine after one year?

A.
$13,500
B.
$14,850
C.
$15,525
D.
$15,885

Answer: C

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