Question 58
Farm Management and RecordsA tractor with an expected life of 10 years was bought for Le 15.0m at the end of which it was to be sold for Le 1.0m. Its calculated depreciation is
- A.Le 1.4m
- B.Le 1.5m
- C.Le 1.6m
- D.Le 1.7m.
Show the answer and explanation
Answer: A (Le 1.4m)
Explanation
(15.0 − 1.0) ÷ 10 = Le 1.4m a year.