Neco Model Questions Vol1 2025 Financial Accounting Question 20
Practice objective / multiple choice question 20 from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
A machine was purchased on 1 January 2022 for \(\,\text{₦}500,000\). Its estimated useful life is 5 years and its residual value is \(\,\text{₦}50,000\). The company used straight‑line depreciation for the first two years. On 1 January 2024 the company switched to the double‑declining‑balance (DDB) method for the remaining life. The machine was sold on 1 July 2024 for \(\,\text{₦}120,000\). Determine the depreciation expense for the year 2024 and the gain or loss on disposal.
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About This Question
This is Neco Model Questions Vol1 2025 Financial Accounting Question 20. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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