Neco 2018 Financial Accounting Question 31

Practice objective / multiple choice question 31 from the 2018 Neco Financial Accounting examination.

Neco 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 31 NECO • 2018 • FINANCIAL_ACCOUNTING • objective

Machine A was purchased for ₦500,000. Its estimated residual value is ₦50,000 and its useful life is 5 years. The company applied the straight‑line method for the first two years and then switched to the diminishing‑balance method at a rate of \(40\%\) per annum on the remaining book value. What is the book value of the machine at the end of year 4?

Answer Options

A. ₦64,800
B. ₦140,000
C. ₦156,800
Correct Answer D. ₦115,200
Correct Answer
D
Correct Option:
₦115,200

About This Question

This is Neco 2018 Financial Accounting Question 31. It is one of the objective questions from the 2018 Neco Financial Accounting examination.

Difficulty level: Medium .

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