Neco 2024 Financial Accounting Question 48
Practice objective / multiple choice question 48 from the 2024 Neco Financial Accounting examination.
An asset was purchased for ₦500,000 with an estimated residual value of ₦50,000 and a useful life of \(5\) years. The company applied straight‑line depreciation for the first \(2\) years and then switched to the diminishing‑balance method for the remaining \(3\) years, choosing a constant depreciation rate that will result in the same total depreciation over the \(5\)-year life as if straight‑line had been used throughout. What depreciation rate (as a percentage, rounded to the nearest whole percent) should be applied from year 3 onward?
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About This Question
This is Neco 2024 Financial Accounting Question 48. It is one of the objective questions from the 2024 Neco Financial Accounting examination.
Difficulty level: Medium .
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