THE BOOK VALUE OF THE ASSET AS AT 31/12/86 WAS
a
N 3 731 250.00
b
N 2 487 500.00
c
N 1 268 750.00
d
N1 020 000. 00
Explanation
Correct Option
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Jetitemi
1 year ago
To find the book value as at 31/12/86, we need to calculate the additional depreciation from 1981 to 1986.
Additional Depreciation = Annual Depreciation Expense x Number of Years
Additional Depreciation = #248,750 x 5
Additional Depreciation = #1,243,750
Total Accumulated Depreciation as at 31/12/86 = Accumulated Depreciation as at 31/12/81 + Additional Depreciation
Total Accumulated Depreciation = #2,736,250 + #1,243,750
Total Accumulated Depreciation = #3,980,000
Book Value as at 31/12/86 = total accumulated depreciation - annual depreciation expense = 3,989,000 - 248,250 = #3,731,250
