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Question
A company has several motor cars that are accounted for as non-current assets. As at April 1, Year 2, the cost of the cars was ₦300,000, and the accumulated depreciation was ₦160,000. What is the carrying amount of the motor cars as at April 1, Year 2?
Answer
Answer: B
Explanation: The correct answer is B (₦140,000). The carrying amount is calculated as the cost of the asset minus the accumulated depreciation. In this case:
Carrying Amount = Cost of Cars – Accumulated Depreciation
Carrying Amount = ₦300,000 – ₦160,000 = ₦140,000.
- Tags: Carrying Amount, Depreciation, Non-current Assets
- Level: Level 1
- Uploader: Dotse