Robin's Business Had Total Assets at the Start of the Year

question 14

Multiple Choice

Robin's business had total assets at the start of the year amounting to £140000 of which £80000 related to current assets. Robin disposed of a fixed asset which had been purchased for £30000 and on which £16000 depreciation had been charged for £15000 and bought a replacement asset for £26000. He charged £11000 depreciation on his assets in the year. What is the fixed asset carrying amount at the end of the year?

• A) £45000
• B) £61000
• C) £136000
• D) £56000
• E) £72000

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Definitions:

Crust

The outermost solid shell of a rocky planet, Earth in particular, which is chemically and mechanically distinct from the mantle below.

Mantle

The thick layer of the Earth located between the crust above and the outer core below, characterized by its solid yet plastic-like flow.

Refracted Wave

A wave that changes direction and speed as it passes from one medium to another due to differences in densities.

Material

Any substance or matter used in manufacturing, construction, or composition of something else.