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JAMB Principles of Accounts 2013 Question 12

Question 12

Depreciation

A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9,000.
The yearly depreciation using the straight line method would be

  1. A.₦8,800.
  2. B.₦6,500
  3. C.₦5,200.
  4. D.₦4,400.
Show the answer and explanation

Answer: C (₦5,200.)

Explanation

(35 000 − 9 000) ÷ 5 = ₦5 200 a year.