passwella.
Menu

WAEC Agricultural Science 2012 Question 55

Question 55

Farm Management and Records

Determine the cost price of a farm equipment that has a salvage value of ₦500,000.00, a useful life of 10 years and an annual depreciation of ₦400,000.00.

  1. A.₦500,000.00
  2. B.₦900,000.00
  3. C.₦4,500,000.00
  4. D.₦5,500,000.00
Show the answer and explanation

Answer: C (₦4,500,000.00)

Explanation

Cost = salvage value + (annual depreciation × years) = 500,000 + 400,000 × 10 = ₦4,500,000.