Neco Model Questions Vol1 2021 Financial Accounting Question 17
Practice objective / multiple choice question 17 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
A machine was purchased on 1\,January\,2022 for \(\text{₦}500,000\). Its estimated residual value is \(\text{₦}50,000\) and its useful life is 5\,years. For the first two years (2022 and 2023) depreciation was charged on a straight‑line basis. From 1\,January\,2024 the company changed to the diminishing‑balance method at a rate of 40\% per annum on the book value at the beginning of each year. What is the book value of the machine at 31\,December\,2025 (end of year\,4)?
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 17. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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