Accounts (Principles of Accounts)Depreciation of non-current assetsWAEC
A machine bought for ₦300,000 is sold for ₦120,000 when its accumulated depreciation is ₦150,000. Find the result on disposal.
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Answer: A. a loss of ₦30,000
Carrying value = 300,000 − 150,000 = ₦150,000; sold for ₦120,000, so a loss of ₦30,000.
An AdmitMe practice question, written for the WAEC syllabus. Not an official past question.