Neco Model Questions Vol1 2017 Financial Accounting Question 49

The income statement of GHI Co. for the year ended 31 December 2017 is partially prepared (amounts in ₦): | Particulars | Amount (₦) | |---|---| | Sales | 1,200,000 | | Cost of Goods Sold (COGS) | 720,000 | | Gross Profit | — | | Operating Expenses: | | - Salaries | 150,000 | | - Rent | 80,000 | | - Depreciation (Plant & Equipment) | — | | - Other expenses | 30,000 | | Operating Profit | — | | Interest expense | 20,000 | | Profit before tax | — | | Tax (30%) | — | | Net Profit | 126,000 | Additional information: - Plant and equipment cost is \(200,000\) ₦. The company depreciates plant and equipment at 10 % per annum on cost using the straight‑line method. No plant was sold or purchased during the year. Determine the depreciation expense for the year.