WAEC Financial Accounting 1998 Question 38

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 net book value on 31st December of Yr. 2?

1. A.N551,400
2. B.N546,000
3. C.N540,000
4. D.N486,000
5. E.N440,000.