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A machine bought for #35,000 was estimated to have a life span of 5 years...

Accounts - Principles of Accounts
JAMB 2013

A machine bought for #35,000 was estimated to have a life span of 5 years with a scrap value of #9,000.

If the scrap value is presently #15,000 what will be the yearly depreciation using straight line method?

  • A. #4,000
  • B. #7,000
  • C. #11,000
  • D. #24,000
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Correct Answer: Option A
Explanation

35,000 - 15000 = 20000

20000/ 5=  4000


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts