RP&A Purchased Some Non-Current Assets Four Years Ago at a Cost

question 7

Multiple Choice

RP&A purchased some non-current assets four years ago at a cost of €19,800.It no longer needs these assets so are going to sell them today at a price of €3,500.The assets have been
Depreciated using 20% reducing balances.What is the current book value of these assets?

• A)€1,140.48
• B)€8,110.08
• C)€3,500.00
• D)€4,016.67
• E)€5,702.40

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Definitions:

Corporate Policies

Guidelines and rules established by a corporation to govern its actions and ensure compliance with legal and ethical standards.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and engage in business and legal activities.

Limited Liability

A legal structure that protects individual investors or company owners from being personally responsible for company debts and liabilities beyond their investment.