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JAMB Accounting 2021 Objective — Question 3

Question 3 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2021 Objective paper, with the correct answer and a full explanation.

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3. Use the following information to answer questions 3 and 4: Cost of machinery 01/01/2015 50,000; Expected useful life 5 years; Estimated scrap value 5,000. What is yearly depreciation using straight line method? a. 9000 b. 8000 c. 7000 d. 10000

  • A. 9000Correct
  • B. 8000
  • C. 7000
  • D. 10000

Explanation

Depreciation = (Cost - Scrap value) / Estimated useful life = (50,000 - 5,000) / 5 = 45,000 / 5 = 9,000 per year.

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