Neco Model Questions Vol1 2024 Financial Accounting Question 7

Practice objective / multiple choice question 7 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 7 NECO_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

An asset costing ₦(240,000) has a residual value of ₦(20,000) and a useful life of 4 years. The sum‑of‑the‑years‑digits (SYD) method is being considered. After three years the observed book value is reported as ₦(80,000). Determine whether the SYD method could produce this book value, and if so, state the depreciation expense for the third year.

Answer Options

A. No; the SYD depreciation for year 3 would be ₦40,000
Correct Answer B. No; the SYD depreciation for year 3 would be ₦44,000
C. No; the SYD depreciation for year 3 would be ₦48,000
D. Yes; the SYD depreciation for year 3 would be ₦44,000
Correct Answer
B
Correct Option:
No; the SYD depreciation for year 3 would be ₦44,000

About This Question

This is Neco Model Questions Vol1 2024 Financial Accounting Question 7. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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