CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 110 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 110
Topic #: 1

A non-current asset was purchased for 240000 at the beginning of Year 1, with an expected life of 7 years and a residual value of 50000. It was depreciated by 20% per annum using the reducing balance method.

At the beginning of Year 4 it was sold for 100000. The result of this was:

AA loss on disposal of 2720

BA loss on disposal of 22880

CA profit on disposal of 50000

DA profit on disposal of 58571

Show Suggested Answer

Suggested Answer: B

by Cassie at Apr 06, 2025, 04:15 PM

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Thora

26 days ago

Ah, the old reducing balance method. I thought that was just for my bank account! But seriously, I'm gonna go with option D. Why? Because it's the most 'balanced' answer, of course!

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Hyman

4 days ago

User 2: Yeah, I agree. It seems like the most balanced choice.

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Daren

16 days ago

User 1: I think option D is the correct answer.

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Desmond

1 months ago

You know, I was thinking about becoming an accountant, but after this question, I'm not so sure. Anyway, I'll go with option C, a profit on disposal of 50000. Sounds like the safest bet to me.

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Ryan

1 months ago

Alright, time to put my calculator to work! I'm gonna go with option A, a loss on disposal of 2720. Gotta love those depreciation calculations, am I right?

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Lashandra

11 days ago

User 3: Yeah, depreciation can really impact the financial statements.

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Elmer

14 days ago

User 2: I agree, the calculations can be tricky sometimes.

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Steffanie

19 days ago

User 1: I think it's option A, a loss on disposal of 2720.

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Lenita

1 months ago

Yikes, this question is a real head-scratcher. But I'm feeling confident about option B, a loss on disposal of 22880. Got to show my accounting chops, you know?

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Cecilia

1 months ago

Hmm, let me think about this. Reducing balance method, huh? That's a tricky one. I'm gonna go with option D, a profit on disposal of 58571. Seems like the right answer to me.

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