Use the information below to answer questions . Motor Vehicle Account as at 31st December
FINANCIAL
JAMB 2003
Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................N1950 000
Dec.31, Addition ............ N400 000
Credit:
Jan. 1, Depreciation ........N1360 000
June 30, Sales proceeds...... N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
What is the actual profit or loss arising from the vehicle disposed of?
- A. N250 000 loss
- B. N50 000 loss
- C. N450 000 profit
- D. N575 000 profit
Correct Answer: C. N450 000 profit
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