JAMB Accounting 2007 Objective — Question 27
Question 27 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.
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Use the information below to answer questions 27 and 28. An asset was purchased for #343M in 2003. The estimated life of the asset was 3 years with a residual value of 28M. Using the straight line method, the depreciation of the asset in the first year was
- A. #210M
- B. #343M
- C. #105MCorrect
- D. #270M
Explanation
Annual depreciation = (Cost - Residual value)/Life = (#343M - #28M)/3 = #105M.
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