CIMAPRA17-BA3-1 Exam - Topic 1 Question 125 Discussion

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

Question #: 125
Topic #: 1

Refer to the Exhibit.

Your organization bought a machine for 50,000 at the beginning of year 1, which had an expected useful life of four years and an expected residual value of 10,000; the machine was depreciated on the straight-line basis.

At the beginning of year 4, the machine was sold for 13,000

The total amount of depreciation charged to the income statement over the life of the machine, and the amount of profit or loss on disposal was:

The answer is:

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: A

by Tina at May 08, 2026, 03:07 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA3-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Detra

17 days ago

I’m a bit lost on how to determine the profit or loss on disposal. Did we consider the accumulated depreciation correctly?

upvoted 0 times

...

Willodean

22 days ago

I remember a similar question where we had to calculate depreciation and then find the profit on sale. I think we need to subtract the book value from the sale price.

upvoted 0 times

...

Cory

27 days ago

I think the total depreciation should be calculated by taking the cost minus the residual value and dividing by the useful life, but I'm not entirely sure about the numbers.

upvoted 0 times

...