9706/13 Accounting May Jun 2024 Online Test | Cambridge AS & A Level MCQ
Adam’s financial year ends on 31 December.
At the beginning of the year, on 1 January, the carrying value of machinery was $20 000.
During the year, on 30 June, he purchased a new machine for $6000. He paid 50% of the cost in cash and the balance by part exchange of an old machine which had the carrying value of $2500 on that date.
He depreciates his machinery by 20% per annum on the carrying value calculated on a time basis.
What is the carrying value of the machinery…