Question 47
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 total depreciation represented by Z in the illustrated table is
- A.N22,200.
- B.N42,000.
- C.N55,800.
- D.N78,000.
Show the answer and explanation
Answer: B (N42,000.)
Explanation
60,000 − 18,000 = N42,000 (or 4,200 × 10).