GCE Financial Accounting 1989 Question 39

A machine cost ₦12,000 and has a useful life of 4 years and an expected disposal value of ₦400. Using the reducing balance method, what is the net book value at the end of year 2? (ignore residual value)

1. A.₦10,480
2. B.₦10,080
3. C.₦9,680
4. D.₦9,600
5. E.₦7,680.