A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the diminishing balance, what is the net book value at the second year?
A. N512
B. N525
C. N640
D. N700
E. N800
Correct Answer:
Option C – N640
A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the diminishing balance, what is the net book value at the second year?
A. N512
B. N525
C. N640
D. N700
E. N800
Correct Answer:
Option C – N640
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