Questions
BACC012 Week 4: Practice Quiz
Single choice
Linh Do Accounting Firm purchased a boat at a cost of $12 000. The boat has an estimated residual value of $2 000 and an estimated life of five years, or 100 000 hours of operation. The boat was purchased on 1 July 2022, and was used 27 000 hours in 2022/23 and 26 000 hours in 2023/24. If the company uses the straight-line method, what is the carrying amount (book value) at 30 June 2025?
Options
A.$6 000
B.$8 000
C.$10 000
D.$4 000
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Step-by-Step Analysis
To tackle this problem, I’ll lay out the scenario and then examine each possible answer.
Option 1: $6,000. This aligns with straight-line depreciation: (Cost − Residual) / Useful life = (12,000 − 2,000) / 5 = 2,000 per year. From 1 Ju......Login to view full explanationLog in for full answers
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Similar Questions
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