Neco Model Questions Vol1 2025 Financial Accounting Question 36
Practice objective / multiple choice question 36 from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
A company has the following equity information at the start of the year: share capital \(\text{₦}500,000\) and retained earnings \(\text{₦}120,000\). During the year the profit before tax was \(\text{₦}80,000\) and the tax rate is \(30\%\). The company paid dividends of \(\text{₦}10,000\). An equipment originally costing \(\text{₦}100,000\) with accumulated depreciation of \(\text{₦}15,000\) was revalued upward by \(\text{₦}25,000\). Depreciation is charged at \(10\%\) of the revalued amount. Assuming the profit before tax already includes depreciation on the original cost, calculate the total equity at the end of the year.
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This is Neco Model Questions Vol1 2025 Financial Accounting Question 36. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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