Question 46
Farm Management and RecordsStudy the table below.
Cost price N20,000; useful life Y years; salvage value N5,000; annual depreciation N1,000/annum; total depreciation N15,000
Cost price N60,000; useful life 10 years; salvage value N18,000; annual depreciation N4,200/annum; total depreciation Z
The useful life represented by Y in the illustrated table is
- A.3 years.
- B.4 years.
- C.15 years.
- D.20 years.
Show the answer and explanation
Answer: C (15 years.)
Explanation
(20,000 − 5,000) ÷ 1,000 = 15 years.