Thursday, 17 September 2015

Cima C02 Exam Question No 24

Question No 24:

S purchased equipment for $80,000 on 1 July year 1. The company’s accounting year end is 31 December. It is S‘s policy to charge a full year’s depreciation in the year of purchase. S depreciates its equipment on the reducing balance basis at 25% per annum.
What is the net book value of the equipment at 31 December year 4?

A.
Nil
B.
$25,312
C.
$29,531
D.
$33,750

Answer: B

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