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 noncurrent asset in the year ending 31 March 20X8
The carrying value of this noncurrent 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 noncurrent 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 noncurrent asset in the year ending 31 March 20X8
The carrying value of this noncurrent 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 noncurrent 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
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Comments


THANKS SO MUCH, I got stuck on this question and it really bugged me.0