A motor vehicle, which was purchased on 1 June 2018 for £16,000, is being depreciated using the reducing balance method by 25% annually. What will be the net book value of the motor vehicle on 31 May 2022? A. £6,750 B. £5,063 C. £4,688 D. None of the above

A motor vehicle, which was purchased on 1 June 2018 for £16,000, is being depreciated using the reducing balance method by 25% annually. What will be the net book value of the motor vehicle on 31 May 2022? A. £6,750 B. £5,063 C. £4,688 D. None of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

2. A motor vehicle, which was purchased on 1 June 2018 for £16,000, is being
depreciated using the reducing balance method by 25% annually. What will
be the net book value of the motor vehicle on 31 May 2022?
A. £6,750
B. £5,063
C. £4,688
D. None of the above

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