Which of the following options best describes the carrying amount of an asset (vehicle)?
Understand the Problem
The question is asking about the correct interpretation of the carrying amount of a vehicle as an asset given several options related to its depreciation, value, and economic benefit. The user needs to analyze the statements provided and determine which option best describes the carrying amount of the vehicle.
Answer
The vehicle is valued at R30,000 after depreciation.
The correct option describes a vehicle bought for R100,000 with accumulated depreciation of R70,000, valued at R30,000.
Answer for screen readers
The correct option describes a vehicle bought for R100,000 with accumulated depreciation of R70,000, valued at R30,000.
More Information
The carrying amount reflects the value of the asset on the balance sheet after accounting for depreciation.
Tips
Ensure you deduct the accumulated depreciation from the original cost to get the carrying amount.
Sources
- Investopedia - Carrying Value - investopedia.com
- Solution Explanation - Chegg - chegg.com
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