The net book value of the piece of equipment 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. N96 000
B. N48 000
C. N36 000
D. N24 000

Correct Answer:

Option C – N36 000