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JAMB Accounting 2014 Objective — Question 19

Question 19 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2014 Objective paper, with the correct answer and a full explanation.

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If machine X cost #600,000 with anticipated life span of five years and estimated scrap value of #50,000, using straight line method, depreciation charged for two years will be

  • A. N700,000
  • B. N240,000
  • C. N220,000Correct
  • D. N202,000

Explanation

Depreciation per year = (600,000−50,000)/5 = N110,000. For two years = N110,000×2 = N220,000.

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