What is the Net book value of the machine at the end of the second year using the straight line 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 Net book value of the machine at the end of the second year using the straight line method

A. N3,250
B. N3,562
C. N3,656
D. N3,750
E. N4,062

Correct Answer:

Option D – N3,750