WAEC Financial Accounting 1994 Question 23

A plant which costs ₦1,000 and has a residual value of ₦125 is depreciated at 20% per annum. Using the diminishing balance, what is the net book value at the second year?

1. A.₦512
2. B.₦525
3. C.₦640
4. D.₦700
5. E.₦800.