If the scrap value is now N15,000. What will be the yearly depreciation using the straight-line method?

Use the information below to answer the question that follows,

A machine bought for N35,000 was estimated to have a life span of 5years with a scrap value of N9,000.

A. N11,000
B. N7,000
C. N4,000
D. N24,000

Correct Answer:

Option C – N4,000