Waec Model Questions Vol1 2024 Financial Accounting Question 8

Practice objective / multiple choice question 8 from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 8 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

A machine was purchased on 1 March 2022 for ₦500,000. Its estimated residual value is ₦50,000 and its useful life is 5 years. The company initially applied the straight‑line method. On 1 January 2024 the machine was revalued upward to a carrying amount of ₦420,000, the revaluation surplus being recorded in other comprehensive income. From that date the company switched to the diminishing‑balance method at a rate of 40 % per annum on the new carrying amount. What is the depreciation expense for the year ended 31 December 2024?

Answer Options

A. ₦140,000
B. ₦160,000
Correct Answer C. ₦168,000
D. ₦176,000
Correct Answer
C
Correct Option:
₦168,000

About This Question

This is Waec Model Questions Vol1 2024 Financial Accounting Question 8. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support