The net book value at the time of sale was?

Use the following information to answer this question

An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.

A. N16,000
B. N14,000
C. N12,000
D. N8,000
E. N6,000

Correct Answer:

Option E – N6,000