The cost of a machine is ₦10,000. The residual value is ₦4,000. It is expected to last for 4 years. Using the straight-line method, what is the amount of depreciation charged per annum?

By: |Published on: Jan 10|Categories: Accounting WAEC| 0 comments

A. 6000
B. 1000
C. 1500
D. 2500

Correct Answer: Option C

C. 1500

Explanation

The formula to be adopted is :
cost – estimated value
years of useful life

10,000 – 4000 = 1500
4

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