Waec Model Questions Vol1 2019 Financial Accounting Question 15

Practice objective / multiple choice question 15 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 15 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

A machine was purchased on 1 January 2022 for ₦500,000. Its estimated residual value is ₦50,000 and its useful life is 5 years. The company depreciates the asset using the double‑declining‑balance method for the first two years and then switches to the straight‑line method for the remaining years. Compute (a) the depreciation expense for the third year and (b) the book value of the machine at the end of the third year.

Answer Options

Correct Answer A. Depreciation expense for year 3 = ₦43,333.33; Book value at end of year 3 = ₦136,666.67
B. Depreciation expense for year 3 = ₦45,000.00; Book value at end of year 3 = ₦135,000.00
C. Depreciation expense for year 3 = ₦50,000.00; Book value at end of year 3 = ₦130,000.00
D. Depreciation expense for year 3 = ₦40,000.00; Book value at end of year 3 = ₦140,000.00
Correct Answer
A
Correct Option:
Depreciation expense for year 3 = ₦43,333.33; Book value at end of year 3 = ₦136,666.67

About This Question

This is Waec Model Questions Vol1 2019 Financial Accounting Question 15. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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