Kevin disposed of a non-current asset on 23 February 20X6 for £7752.He had bought the asset on 1 July 20X1 for £28 000, applying a policy of depreciating it over 8 years on the straight-line basis with 1/12^th of the annual depreciation charged for each full month of ownership.He assumed a residual value of £3000. What was the loss on disposal (to the nearest £)? A)£5925 B)£4206 C)£2925 D)£6571

Question

Quizplus · Accepted Answer

Depreciation = (28000 - 3000) / 8 = 3125 per annumDepreciation for 5 years and 7 months = 3125 * 5 + (3125 / 12) * 7 = 18750Loss on disposal = 28000 - 18750 - 7752 = 5925

Kevin Disposed of a Non-Current Asset on 23 February 20X6