Waec Model Questions Vol1 2023 Financial Accounting Question 20

Practice objective / multiple choice question 20 from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 20 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

An asset was purchased for ₦500,000. Its estimated residual value is ₦50,000 and its useful life is 5 years. The company uses the double‑declining‑balance (DDB) method, but switches to straight‑line depreciation when the DDB charge for a year would be less than the straight‑line charge for the remaining life. The first‑year depreciation expense has already been recorded. Determine the depreciation expense for the third year.

Answer Options

A. ₦66,000
Correct Answer B. ₦72,000
C. ₦84,000
D. ₦78,000
Correct Answer
B
Correct Option:
₦72,000

About This Question

This is Waec Model Questions Vol1 2023 Financial Accounting Question 20. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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