A company buys a machine for ₦500 000. Its estimated useful life is 5 years and the salvage value at the end of the period is ₦50 000. Using the double‑declining‑balance method, calculate the depreciation expense for year 3 and the cumulative depreciation after year 3.

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Accepted Answer

Year 3 depreciation ₦72 000; cumulative depreciation ₦392 000

City Guilds Model Questions Vol1 2020 Information Technology Question 14

A company buys a machine for ₦500 000. Its estimated useful life is 5 years and the salvage value at the end of the period is ₦50 000. Using the double‑declining‑balance method, calculate the depreciation expense for year 3 and the cumulative depreciation after year 3.

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City Guilds Model Questions Vol1 2020 Information Technology Question 14

A company buys a machine for ₦500 000. Its estimated useful life is 5 years and the salvage value at the end of the period is ₦50 000. Using the double‑declining‑balance method, calculate the depreciation expense for year 3 and the cumulative depreciation after year 3.

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A company buys a machine for ₦500 000. Its estimated useful life is 5 years and the salvage value at the end of the period is ₦50 000. Using the double‑declining‑balance method, calculate the depreciation expense for year 3 and the cumulative depreciation after year 3.