HELLO. can you help solving this problem? I do not get what write down means
XYX Co’s non-current assets had written down values of $368,400 and $485,000 at the beginning and
end of the year respectively. Depreciation for the year was $48,600. Assets originally costing $35,000,
with a carrying amount of $18,100 were sold in the year for $15,000.
What were the additions to non-current assets in the year?
A $183,300
B $200,200
C $49,900
D $180,200
Ask the Tutor ACCA FA
MIXED BANK 7
10y ago#1Written down value / net book value / carrying value all mean the same thing.
At the start of the year it was 368,400.
If they had not bought any more, then at the end of the year it would have been 368,400 - 48,600 - 18,100 = 301,700
In fact it was 485,000 at the end of the year, and so they must have had additions of 485,000 - 301,700 = 183,300.
I do suggest that you watch our free lectures. Our lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
THANK YOU VERY MUCH, YOU ARE THE BEST!
10y ago#3You are welcome :-)
Sign into reply to this topic.