Use the following information to answer the given question,
(begin{array}{c|c} & N\ hline text{Purchase price of equipment} & 60,000\ text{Freight and installation cost} & 10,000 \ text{Annual maintenance cost} & 1,000\ text{Estimated useful life – 5 years} & \ text{Estimated scrap value} & 2000 end{array})
What is the annual depreciation charge of straight line method is used?
(begin{array}{c|c} & N\ hline text{Purchase price of equipment} & 60,000\ text{Freight and installation cost} & 10,000 \ text{Annual maintenance cost} & 1,000\ text{Estimated useful life – 5 years} & \ text{Estimated scrap value} & 2000 end{array})
What is the annual depreciation charge of straight line method is used?
-
A.
N14,000 -
B.
N13,000 -
C.
N12,000 -
D.
N10,000