What is the amount of depreciation for the second year using the reducing balance method?

A machine bought for N7,000 was estimated to have a useful life of 4 years and a scrap value of N500. What is the amount of depreciation for the second year using the reducing balance method?

A. N1,313
B. N1,4066
C. N1,625
D. N1,750
E. N1,875

Correct Answer:

Option A – N1,313