What was the value of fixed assets at the beginning of the year?

Palaju Enterprises had fixed assets costing N900,000 with provision for depreciation of N150,000 were disposed of during the period. Fixed assets of N100,000 were added during the year. Provision for depreciation was N350,000 at the beginning of the year and N300,000 at the end of the year.

A. N2,900,000
B. N3,800,000
C. N3,900,000
D. N4,000,000

Correct Answer:

Option C – N3,900,000