- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
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 $180,200Written 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 = 301,700In 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.
- You must be logged in to reply to this topic.