Accounting WAEC

The net result of the sale was?

motor car costing N10,000 was depreciated at 20 percent annum by the diminishing balance method. Two years late, it was sold for N6,000. The net result of the sale was

A. N6,400 profit
B. N6,000 loss
C. N4,000 loss
D. N400 profit
E. N400 loss

Correct Answer:

Option E – N400 loss

Sunday

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