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WAEC Agricultural Science 2011 Question 56

Question 56

Farm Management and Records

Calculate the annual depreciation of a farm house using the following data:
(i) The initial cost of farm house = ₦100,000.00
(ii) Expected life span of farm house = 100 years
(iii) Estimated salvage value of farm house = ₦25,000.00

  1. A.₦750.00
  2. B.₦725.00
  3. C.₦720.00
  4. D.₦700.00
Show the answer and explanation

Answer: A (₦750.00)

Explanation

(₦100,000 − ₦25,000) ÷ 100 years = ₦750 per year.