A car was purchased for $12,000 on 1 April in year 1 and has been depreciated...

 

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A car was purchased for $12,000 on 1 April in year 1 and has been depreciated at 20% each year straight line, assuming no residual value. The company policy is to charge a full year's depreciation in the year of purchase and no depreciation in the year of sale. The car was traded in for a replacement vehicle on 1 August in year 4 for an agreed figure of $5,000. What was the profit or loss on the disposal of the vehicle in year 4? A car was purchased for $12,000 on 1 April in year 1 and has been depreciated at 20% each year straight line, assuming no residual value. The company policy is to charge a full year's depreciation in the year of purchase and no depreciation in the year of sale. The car was traded in for a replacement vehicle on 1 August in year 4 for an agreed figure of $5,000. What was the profit or loss on the disposal of the vehicle in year 4?

Answer rating: 100% (QA)

Correct answer 200 Car Value 12000 End ... View the full answer