Waec Model Questions Vol1 2018 Financial Accounting Question 30

Practice objective / multiple choice question 30 from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 30 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

A machine was purchased on 1 January 2022 for ₦500,000. Its estimated residual (salvage) value is ₦50,000 and its useful life is 5 years. The company uses the double‑declining‑balance method of depreciation. Calculate the depreciation expense for the third year and the book value of the machine at the end of the third year.

Answer Options

A. Depreciation expense for Year 3 = ₦73,500; Book value at end of Year 3 = ₦171,500
B. Depreciation expense for Year 3 = ₦90,000; Book value at end of Year 3 = ₦230,000
C. Depreciation expense for Year 3 = ₦100,000; Book value at end of Year 3 = ₦200,000
Correct Answer D. Depreciation expense for Year 3 = ₦72,000; Book value at end of Year 3 = ₦108,000
Correct Answer
D
Correct Option:
Depreciation expense for Year 3 = ₦72,000; Book value at end of Year 3 = ₦108,000

About This Question

This is Waec Model Questions Vol1 2018 Financial Accounting Question 30. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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