Gce Model Questions Vol1 2023 Financial Accounting Question 23

Practice objective / multiple choice question 23 from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 23 GCE_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

An asset is purchased for \(200,000\) naira, has a residual value of \(20,000\) naira and a useful life of 5 years. The company uses straight‑line depreciation for the first two years and then switches to the reducing‑balance method at a rate of 40% per year. Calculate the depreciation expense for the third year and the book value at the end of the third year.

Answer Options

Correct Answer A. Depreciation year 3 = 51,200; Book value end of year 3 = 76,800
B. Depreciation year 3 = 43,200; Book value end of year 3 = 84,800
C. Depreciation year 3 = 36,000; Book value end of year 3 = 92,000
D. Depreciation year 3 = 80,000; Book value end of year 3 = 48,000
Correct Answer
A
Correct Option:
Depreciation year 3 = 51,200; Book value end of year 3 = 76,800

About This Question

This is Gce Model Questions Vol1 2023 Financial Accounting Question 23. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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