Accounting WAEC

What is the amount of depreciation for the second year?

A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the diminishing balance method, what is the amount of depreciation for the second year?

A. N128
B. N140
C. N160
D. N175
E. N200

Correct Answer:

Option C – N140

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