WAEC Financial Accounting 1998 Question 40

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 the straight line method, what is the net book value at the beginning of the year 3?

1. A.N540,000
2. B.N492,000
3. C.N486,000
4. D.N438,000
5. E.N437,400.