NABTEB Accounting 2020 Objective — Question 17

Question 17 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2020 Objective paper, with the correct answer and a full explanation.

Kako Ltd bought a machine for D1,200,000 on 1 January 2018. Depreciation was provided annually at 10% using the diminishing (reducing) balance method. The machine was sold for D880,000 on 31 December 2021. The accumulated depreciation as at the date of disposal was

A. D480,000
B. D412,000
C. D325,000
D. D412,680Correct

Explanation

Depreciation: 2018=120,000; 2019=108,000; 2020=97,200; 2021=87,480. Accumulated = 120,000+108,000+97,200+87,480 = D412,680.

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