Gce Model Questions Vol1 2025 Financial Accounting Question 33

Practice objective / multiple choice question 33 from the 2025 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2025 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 33 GCE_MODEL_QUESTIONS_VOL1 • 2025 • FINANCIAL_ACCOUNTING • objective

A machine was purchased on 1 January 2025 for £ 48 000. It has a residual value of £ 6 000 and a useful life of 6 years. The company uses the double‑declining‑balance method. After two years the company revises the residual value to £ 8 000 and the remaining useful life to 4 years. Calculate the depreciation expense for the third year under the revised estimates and give the book value of the machine at the end of year 3.

Answer Options

A. Depreciation year 3 = £9,333; Book value end of year 3 = £12,000
B. Depreciation year 3 = £12,000; Book value end of year 3 = £9,333
C. Depreciation year 3 = £8,000; Book value end of year 3 = £13,333
Correct Answer D. Depreciation year 3 = £10,667; Book value end of year 3 = £10,667
Correct Answer
D
Correct Option:
Depreciation year 3 = £10,667; Book value end of year 3 = £10,667

About This Question

This is Gce Model Questions Vol1 2025 Financial Accounting Question 33. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

View More Gce Model Questions Vol1 2025 Financial Accounting Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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