Question

Hightop‘s balance sheet of 30 June 2018 shows a motor vehicle at a cost price of...

Hightop‘s balance sheet of 30 June 2018 shows a motor vehicle at a cost price of $46 000 less accumulated depreciation of $17 500. Depreciation is calculated on a straight-line basis. If the vehicle had a useful life of 6 years at the time of purchase and a residual value of $4 000, its carrying amount on 1 July 2020 is:

A) $7 666.

B) $13 160.

C) $14 500.

D) $17 500.

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Answer #1

The right option is C. i.e. Carrying value of the motar vehicke as on 01-07-2020 is 14,500.

Please refer the below workings.

Kindly leave a comment for queries,if any.

Please upvote!!!Much needed.

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