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})
Using reducing balance method at the rate of 20%. What is the depreciation charge for the second year?
(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})
Using reducing balance method at the rate of 20%. What is the depreciation charge for the second year?
-
A.
N13,600 -
B.
N11,200 -
C.
N10,880 -
D.
N9,600