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An item of machinery was sold within the year for 5,200. The machinery asset cost the company 10,400 over two years ago. The closing balances
An item of machinery was sold within the year for 5,200. The machinery asset cost the company 10,400 over two years ago. The closing balances on the machinery cost account and the machinery accumulated depreciation account were 121,000 and 18,500 respectively. It is company policy to provide for depreciation in the year of purchase but not in the year of sale. (Two years' depreciation charged at 20 per cent straight line per year had been expensed in relation to this asset.) What is the balance of the accumulated depreciation account after disposal? A. 18,500 cr B. 36,460 r C. None of these D. 22,120 cr E. 36,460 dr
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