Question 45
Farm Management and RecordsA farmer bought a farm implement for N12,500 in 2007. At the end of the fourth year, he sold it for N4,300.
The annual depreciation of the implement is
- A.N4,300.
- B.N3,125.
- C.N2,050.
- D.N1,075
Show the answer and explanation
Answer: C (N2,050.)
Explanation
Annual depreciation = 8,200 ÷ 4 years = N2,050.