Gce Model Questions Vol1 2017 Financial Accounting Question 41
Practice objective / multiple choice question 41 from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
A machine was purchased for ₦120,000. It has an estimated useful life of 5 years and an unknown residual value. The company depreciates the asset using the straight‑line method for the first two years and then switches to the diminishing‑balance method at a rate of \(40\%\) per annum on the written‑down value. After three years the total depreciation charged is ₦72,000. What is the residual value of the machine at the end of its useful life?
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About This Question
This is Gce Model Questions Vol1 2017 Financial Accounting Question 41. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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