The net book value of a company's non-current assets was £400,000 at 1 January 20X0. During the year to 31 December 20X0 the company sold non-current assets for £50,000, incurring a loss of £10,000. The depreciation charge for the year was £40,000. What was the net book value of the non-current assets at 31 December 20X0?

Question

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The net book value of the non-current assets at 31 December 20X0 is £300,000. This is calculated as follows:Net book value at 1 January 20X0: £400,000Less: Proceeds from sale of non-current assets: £50,000Add: Loss on sale of non-current assets: £10,000Less: Depreciation charge for the year: £40,000Net book value at 31 December 20X0: £300,000

The Net Book Value of a Company's Non-Current Assets Was