Waec Model Questions Vol1 2019 Financial Accounting Question 6
Practice objective / multiple choice question 6 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
A machine was purchased for ₦500,000. The company depreciated it using the straight‑line method for the first two years and then switched to the double‑declining‑balance method for the remaining three years. After the third year (i.e., at the end of year 3) the book value of the machine was ₦140,000. Assuming the double‑declining‑balance rate remains the same for years 4 and 5 and that the asset is fully depreciated by the end of year 5, what is the estimated salvage value that will be shown at the end of year 5? Express your answer in naira, rounded to the nearest naira.
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About This Question
This is Waec Model Questions Vol1 2019 Financial Accounting Question 6. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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