CIMA Fundamentals of financial accounting BA3 Question # 46 Topic 5 Discussion

CIMA Fundamentals of financial accounting BA3 Question # 46 Topic 5 Discussion

BA3 Exam Topic 5 Question 46 Discussion:
Question #: 46
Topic #: 5

M Ltd owns property costing $80,000 ($50,000 for the land and $30,000 for the building).

The company's accounting policy is to depreciate buildings at the rate of 5% per annum on the straight-line basis.

After five years, what is the net book value of freehold land and building in the financial accounts of M Ltd?


A.

$87,500


B.

$72,500


C.

$60,000


D.

$78,500


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