O Level Accounting (7707)•7707/11/M/J/22
Explanation
Depreciation method and period held are ambiguous Steps:
- Depreciable amount = 1,000 = $16,000.
- Assuming straight-line depreciation over 3 years, annual depreciation = 5,333.
- Period held = 1 year (1 April 2021 to 1 April 2022), so accumulated depreciation = $5,333.
- Net book value at disposal = 5,333 = 15,000, resulting in gain of $3,333, not a loss.
Not enough information.
Final answer: Not enough information.
Topic: Accounting for depreciation and disposal of non-current assets
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