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WAEC Financial Accounting 2000 Question 35

Question 35

Depreciation

A motor vehicle bought for N16,000 was estimated to have a useful life span of 4 years and a scrap value of N2,000.
Using the straight line method, what is the amount of depreciation charged per annum?

  1. A.N9,000
  2. B.N5,500
  3. C.N4,000
  4. D.N3,500
Show the answer and explanation

Answer: D (N3,500)

Explanation

(16,000 − 2,000) ÷ 4 = N3,500.