Waec Model Questions Vol1 2021 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2021 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 22 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

A machine was purchased for ₦500,000 on 1 March. It was originally estimated to have a useful life of 5 years and a salvage value of ₦50,000, and depreciation is charged on a straight‑line basis. After two full years, management revises the remaining useful life to a total of 4 years (i.e., 2 years remaining) and reduces the salvage value to ₦30,000. Assuming the first year's depreciation is prorated for the 10 months from March to December, calculate the depreciation expense to be recorded for the third year (the year ending 31 December of the third year).

Answer Options

A. ₦90,000
Correct Answer B. ₦152,500
C. ₦150,000
D. ₦155,000
Correct Answer
B
Correct Option:
₦152,500

About This Question

This is Waec Model Questions Vol1 2021 Financial Accounting Question 22. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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