IPA FE Subject A sample Question 58
A question IPA Japan published in 基本情報技術者試験 科目A サンプル問題 問58, translated into English. ITPEC is based on the same exams.
When a PC purchased for 300,000 yen in April 2020 is sold for 10,000 yen three (3) years later, how much is the loss on sale of fixed assets, in 10,000 yen? Here, the useful life is four (4) years, depreciation is by the straight-line method, the depreciation rate of the straight-line method is 0.250, and the residual value is 0 yen.
Explanation
6.5 (65,000 yen) — the loss is the book value at the time of sale minus the sale price.
- •Annual depreciation: 300,000 × 0.250 = 75,000 yen (the same as 300,000 ÷ 4, since the residual value is 0)
- •Depreciation over three years: 75,000 × 3 = 225,000 yen
- •Book value after three years: 300,000 − 225,000 = 75,000 yen
- •Loss on sale: 75,000 − 10,000 = 65,000 yen, that is 6.5 in units of 10,000 yen
Answer (b)
Why not others:
- •(d) 7.5 — is the book value itself; it forgets to subtract the 10,000 yen received from the sale
- •(a) 6.0 and (c) 7.0 — no straight-line schedule from these data gives them: the book value after three full years is 75,000 yen, and the sale brings in 10,000 yen, so the loss is 65,000 yen
Key rule: Loss (or gain) on sale of a fixed asset = book value at the sale − sale price, where book value = cost − accumulated depreciation.
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This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.