# CTRM mock assessment question - help please

Kwilb
Registered Posts:

**4**
Hello all,

I am really struggling with this 1st task of the Mock assessment (Sample CBT 1) for CTRM (level 4 AAT professional level) on the AAT website.

The question is quite long but I will write the bit that I struggle with.

The operating profit included depreciation of £124,000

The company purchased a non-current asset in the year ending 31 March 20X8

The carrying value of this non-current asset was £72,000

The depreciation rate is 25% and a full year's depreciation charge is made in the year of acquisition

What is the closing cash position as at 31 March 20X8 for the Purchase of non-current asset?

The answer -96,000 but I do not understand how to get that number!

I get -106,000 but it must be wrong, here are my calculations :

72,000 x 25% = 18,000

72,000 - 18,000 = 54,000

54,000 + 124,000 - 72,000 = 106,000

but it must be wrong, please could someone help me out ..!!!!

Many thanks

KWilb

I am really struggling with this 1st task of the Mock assessment (Sample CBT 1) for CTRM (level 4 AAT professional level) on the AAT website.

The question is quite long but I will write the bit that I struggle with.

The operating profit included depreciation of £124,000

The company purchased a non-current asset in the year ending 31 March 20X8

The carrying value of this non-current asset was £72,000

The depreciation rate is 25% and a full year's depreciation charge is made in the year of acquisition

What is the closing cash position as at 31 March 20X8 for the Purchase of non-current asset?

The answer -96,000 but I do not understand how to get that number!

I get -106,000 but it must be wrong, here are my calculations :

72,000 x 25% = 18,000

72,000 - 18,000 = 54,000

54,000 + 124,000 - 72,000 = 106,000

but it must be wrong, please could someone help me out ..!!!!

Many thanks

KWilb

## Comments

155That means that the purchase price of this non-current asset is £72,000 / 0.75 = £96,000

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