Manfred's business buys a non-current asset for £5600 on 1 January 20X4.The asset has an expected useful life of three years with an expected residual value of £200.On 1 January 20X7 the asset is sold for £600. What is total net cash outflow incurred by the business in respect of these transactions?
A)£5600
B)£5200
C)£4800
D)£5000

Question

Quizplus · Accepted Answer

The Answer of Manfred's business buys a non-current asset for £5600 on 1 January 20X4.The asset has an expected useful life of three years with an expected residual value of £200.On 1 January 20X7 the asset is sold for £600. What is total net cash outflow incurred by the business in respect of these transactions?
A)£5600
B)£5200
C)£4800
D)£5000

Manfred's Business Buys a Non-Current Asset for £5600 on 1