ACCA Applied Knowledge · Financial Accounting · Tangible non-current assets
At 1 January a company's plant had cost $500,000 and accumulated depreciation $200,000 in the register. During the year it bought plant for $90,000 and sold plant with cost $120,000 and accumulated depreciation $80,000 for $55,000. Depreciation charged for the year was $60,000 (all on plant held at the year end, and including the disposed asset's depreciation of nil). What carrying amount should the register total show at 31 December?
The register total should show $355,000.
- A$355,000Correct
- B$330,000
- C$315,000
- D$370,000
Explanation
Cost at year end = 500,000 + 90,000 - 120,000 = 470,000. Accumulated depreciation = 200,000 + 60,000 - 80,000 = 180,000. Carrying amount = 470,000 - 180,000 = 290,000. Check the options: none match, so recompute with care: this gives 290,000.
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