Accounting · IAS 16 Disposal of Non-Current Assets
Satya Co has a financial year-end of 31 December. On 1 April 20X3, it purchased a machine for $20,000. Depreciation is charged at 20% per annum on the reducing balance basis, pro-rated for the months of ownership. On 30 September 20X5, the machine was traded in for a new model costing $25,000, with a part-exchange allowance of $8,000. What is the profit or loss on the disposal of the old machine?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1$2,240 Profit
- 2$2,240 Loss
- 3$3,360 Loss✓
- 4$3,360 Profit
Correct answer
$3,360 Loss
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Accounting?
Practice full-length Accounting mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice IAS 16 Disposal of Non-Current Assets MCQs →Want more practice questions on IAS 16 Disposal of Non-Current Assets?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · IAS 16 Disposal of Non-Current Assets