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JAMB Accounting 2018 Objective — Question 3

Question 3 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2018 Objective paper, with the correct answer and a full explanation.

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A machine bought for #35,000 was estimated to have a life span of 5 years with a scrap value of #9,000. The yearly depreciation using the straight line method would be

  • A. #8,800
  • B. #6,500
  • C. #5,200Correct
  • D. #4,400

Explanation

Yearly depreciation = (Cost − Scrap value)/Life span = (35,000−9,000)/5 = 26,000/5 = 5,200.

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