JAMB Accounting 2019 Objective — Question 34

Question 34 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2019 Objective paper, with the correct answer and a full explanation.

On January 1st 2005, a machine was bought for ₦56,000 to last for 5 years with a residual value of ₦1,000. Calculate the yearly depreciation expense using the straight line method.

A. ₦11,000Correct
B. ₦11,200
C. ₦11,400
D. ₦11,300

Explanation

Yearly depreciation = (Cost − residual value)/useful life = (56,000−1,000)/5 = 55,000/5 = ₦11,000.

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