Accounting WAEC

Using reducing balance method at the rate of 20%. What is the depreciation charge for the second year?

Use the following information to answer the given question,

#
Purchase price of equipment 60,000
Freight and installation cost 10,000
Annual maintenance cost 1,000
Estimated useful life – 5 years
Estimated scrap value 2000

A. N13,600
B. N11,200
C. N10,880
D. N9,600

Correct Answer: Option B

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6 years ago

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