A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.
If the scrap value is presently N15,000, what will be the yearly depreciation using the straight line method?
-
A.
N4,000 -
B.
N7,000 -
C.
N11,000 -
D.
N24,000
Correct Answer: Option A
Explanation
(35000 – 15000) = (20000 timesfrac{1}{5})
= N4000