Neco 2017 Financial Accounting Question 37

Practice objective / multiple choice question 37 from the 2017 Neco Financial Accounting examination.

Neco 2017 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 37 NECO • 2017 • FINANCIAL_ACCOUNTING • objective

An asset was purchased for \(120,000\). Its estimated residual value is \(20,000\) and its useful life is 5 years. 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 year on the remaining book value. Calculate the book value of the asset at the end of year 4.

Answer Options

Correct Answer A. 28,800
B. 30,400
C. 24,000
D. 32,000
Correct Answer
A
Correct Option:
28,800

About This Question

This is Neco 2017 Financial Accounting Question 37. It is one of the objective questions from the 2017 Neco Financial Accounting examination.

Difficulty level: Medium .

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