Neco Model Questions Vol1 2024 Financial Accounting Question 33
Practice objective / multiple choice question 33 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
On 1 March, a company purchased a delivery van for \(\text{₦}500,000\). The van has an estimated residual value of \(\text{₦}50,000\) and a useful life of 5 years. The company depreciates the van using the reducing‑balance method at an annual rate of 40 %. Calculate: a) the depreciation expense for the first accounting year (1 March to 31 December), and b) the carrying amount of the van on 31 December.
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About This Question
This is Neco Model Questions Vol1 2024 Financial Accounting Question 33. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Easy .
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