Neco 2021 Financial Accounting Question 40
Practice objective / multiple choice question 40 from the 2021 Neco Financial Accounting examination.
An asset was acquired for \(\text{₦}500,000\) with an estimated residual value of \(\text{₦}50,000\) and a useful life of 5 years. The company uses the straight‑line method. After two years, management revises the residual value to \(\text{₦}80,000\) and extends the total useful life to 6 years. Compute the depreciation expense for the third year.
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About This Question
This is Neco 2021 Financial Accounting Question 40. It is one of the objective questions from the 2021 Neco Financial Accounting examination.
Difficulty level: Medium .
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