Neco 2017 Financial Accounting Question 10

Practice objective / multiple choice question 10 from the 2017 Neco Financial Accounting examination.

Neco 2017 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 10 NECO • 2017 • FINANCIAL_ACCOUNTING • objective

A municipal council purchased a road‑maintenance vehicle for \( \text{₦}24,000,000 \) on 1 January 2022. The vehicle was depreciated using the straight‑line method over 5 years with no residual value. From 1 January 2024 the council must apply the diminishing‑balance method at a rate of 40 % per annum on the carrying amount at the beginning of each year. Compute: (a) the depreciation expense for the year ended 31 December 2024; (b) the carrying amount of the vehicle at 31 December 2024; (c) the amount of depreciation expense that should be transferred to the Capital Maintenance Fund for 2024.

Answer Options

Correct Answer A. (a) 5,760,000; (b) 8,640,000; (c) 5,760,000
B. (a) 4,320,000; (b) 10,080,000; (c) 4,320,000
C. (a) 4,800,000; (b) 9,600,000; (c) 4,800,000
D. (a) 9,600,000; (b) 14,400,000; (c) 9,600,000
Correct Answer
A
Correct Option:
(a) 5,760,000; (b) 8,640,000; (c) 5,760,000

About This Question

This is Neco 2017 Financial Accounting Question 10. It is one of the objective questions from the 2017 Neco Financial Accounting examination.

Difficulty level: Hard .

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