what us the net book value at the end of the year 2? (ignoring residual value)

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the reducing balance method, what us the net book value at the end of the year 2? (ignoring residual value)

A. N10,480
B. N10,080
C. N9,680
D. N9,600
E. N7,680

Correct Answer:

Option E – N7,680