Neco 2018 Financial Accounting Question 19

Practice objective / multiple choice question 19 from the 2018 Neco Financial Accounting examination.

Neco 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 19 NECO • 2018 • FINANCIAL_ACCOUNTING • objective

A machine was purchased on 1 January 2020 for \(500,000\) naira. It has a residual value of \(50,000\) naira and a useful life of 5 years. The company depreciates the machine using the straight‑line method for the first two years and then switches to the reducing‑balance method at a rate of 40 % per annum for the remaining years. Calculate: a) The depreciation expense for the year ended 31 December 2023. b) The carrying amount of the machine on that date.

Answer Options

A. Depreciation expense for 2023: 68,000 naira; Carrying amount: 122,400 naira
B. Depreciation expense for 2023: 84,000 naira; Carrying amount: 106,000 naira
Correct Answer C. Depreciation expense for 2023: 76,800 naira; Carrying amount: 115,200 naira
D. Depreciation expense for 2023: 70,000 naira; Carrying amount: 120,000 naira
Correct Answer
C
Correct Option:
Depreciation expense for 2023: 76,800 naira; Carrying amount: 115,200 naira

About This Question

This is Neco 2018 Financial Accounting Question 19. It is one of the objective questions from the 2018 Neco Financial Accounting examination.

Difficulty level: Medium .

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