JAMB Accounting 2023 Objective — Question 22

Question 22 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2023 Objective paper, with the correct answer and a full explanation.

If the asset is sold at the end of the third year for #50,000, then Joy enterprise made a A.

A. #2,000 profit
B. #2,000 loss
C. #10,000 profit
D. #4,000 profitCorrect

Explanation

At the end of third year, accumulated depreciation = #18,000x3=#54,000. Net book value=#100,000-#54,000=#46,000. Profit=#50,000-#46,000=#4,000.

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