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Calculate the salvage value of a tractor with a depreciation value of ₦10,580.00 and initial...

Agricultural Science
JAMB 2021

Calculate the salvage value of a tractor with a depreciation value of ₦10,580.00 and initial cost of ₦50,000 after a year of use

  • A. ₦10,580
  • B. ₦30,290
  • C. ₦39,420
  • D. ₦60,580
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Correct Answer: Option C
Explanation

Salvage value is the estimated book value of an asset after depreciation is calculated.
Salvage value + Depreciation value = Cost price
Salvage value + 10,580 = 50,000
∴ Salvage value = 50,000 - 10,580
⇒ ₦39,420


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts