passwella.
Menu

WAEC Financial Accounting 2016 Question 21

Question 21

Depreciation

Use the following information: Acquisition cost of computers Le 80,000; Installation cost Le 20,000; Estimated residual value Le 4,000; Estimated useful life 5 years.
The total costs of the computers is

  1. A.Le 80,000.
  2. B.Le 96,000.
  3. C.Le 100,000.
  4. D.Le 104,000.
Show the answer and explanation

Answer: C (Le 100,000.)

Explanation

Cost includes installation: 80,000 + 20,000 = Le 100,000.