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UI Post-UTME Financial Accounting 2024 (Model questions) Question 22

Question 22

Depreciation

If a machine cost 2000 naira and its estimated life span is 10 years and its residual is 500 naira. The yearly value of depreciation in naira is

  1. A.250
  2. B.180.
  3. C.150
  4. D.130
Show the answer and explanation

Answer: C (150)

Explanation

Straight-line depreciation = (2,000 − 500) ÷ 10 = ₦150 a year.