WAEC Financial Accounting 1994 Question 48

A machine bought for ₦7,000 was estimated to have a useful life of 4 years and a scrap value of ₦500. What is the Net book value of the machine at the end of the second year, using the straight line method?

1. A.₦3,250
2. B.₦3,562
3. C.₦3,656
4. D.₦3,750
5. E.₦4,062.