WAEC Financial Accounting 1998 Question 37

The Accounting year of Fehintola Ltd. ends on 31st December every year.
Plant and Machinery purchased on 1st January, Year 1: N600,000
Depreciation rate per annum: 10%
Scrap value: N60,000
Using reducing balance method, what is the depreciation for Yr. 2?

1. A.N160,000
2. B.N114,000
3. C.N60,000
4. D.N54,000
5. E.N48,000.