What was the amount of depreciation charged per annum using 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 was the amount of depreciation charged per annum using straight line method?

A. N1,313
B. N1,406
C. N1,625
D. N1,750
E. N1,875

Correct Answer:

Option C – N1,625