A Machine Purchased on 1 July 2019 Cost $100 000

question 3

Multiple Choice

A machine purchased on 1 July 2019 cost $100 000 and has a zero estimated salvage value. The useful life of the machine is five years. If the machine was sold on 30 September 2021, what would its net book value be?

• A) $45 000
• B) $50 000
• C) $55 000
• D) $60 000

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Definitions:

Cause And Effect

The relationship between events or things, where one is the result of the other or others.

Observational Research

A research method that involves studying subjects without manipulating the environment, often used to gather data in natural settings.

Piaget's Concept

A theory of cognitive development that outlines how children's ability to think progresses through several stages as they mature.

Assimilation And Accommodation

Cognitive processes identified by Piaget, whereby assimilation involves incorporating new information into existing schemas, and accommodation refers to adjusting schemas based on new information.