An item of machinery was sold within the year for €5,200. The machinery asset cost the company €10,400 over two years ago. The closing balances on themachinery cost account and the machinery accumulated depreciation account were €121,000 and €18,500 respectively. It is company policy to provide fordepreciation in the year of purchase but not in the year of sale. (Two years' depreciation charged at 20 per cent straight line per year had been expensed inrelation to this asset.)What is the balance of the accumulated depreciation account after disposal?А. €18,500 crВ. €36,460 crC. None of theseD. €22,120 crE. €36,460 dr

solution given cost of asset sold =10400 depreciation rate =20% SLM balance…

An item of machinery was sold within the year for €5,200. The machinery asset cost the company €10,400 over two years ago. The closing balances on the machinery cost account and the machinery accumulated depreciation account were €121,000 and €18,500 respectively. It is company policy to provide fo depreciation in the year of purchase but not in the year of sale. (Two years' depreciation charged at 20 per cent straight line per year had been expensed relation to this asset.) What is the balance of the accumulated depreciation account after disposal?

An item of machinery was sold within the year for €5,200. The machinery asset cost the company €10,400 over two years ago. The closing balances on the machinery cost account and the machinery accumulated depreciation account were €121,000 and €18,500 respectively. It is company policy to provide fo depreciation in the year of purchase but not in the year of sale. (Two years' depreciation charged at 20 per cent straight line per year had been expensed relation to this asset.) What is the balance of the accumulated depreciation account after disposal?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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