The accumulated depreciation provision at the time of sale was?

A piece of equipment costing N120,000 was purchased on 1/1/1996. Depreciation was provided at 20% per annum on a straight-line basis. it was sold on 30/6/1999 for N31,500.

A. N12 000
B. N60 000
C. N72 000
D. N84 000

Correct Answer:

Option D – N84 000