WAEC Accounting 2022 Objective — Question 17
Question 17 of 50 from the West African Examinations Council (WAEC) Accounting 2022 Objective paper, with the correct answer and a full explanation.
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Use the following information to answer questions 17 to 19. Kako Ltd bought a machine for D1,200,000 on 1st January 2018. Depreciation was provided annually at a rate of 10% using the diminishing balance method. The machine was sold for D880,000 on 31st December 2021. The accumulated depreciation as at the date of disposal was
- A. D480,000
- B. D412,680Correct
- C. D325,200
- D. D320,000
Explanation
2018 dep = 10%×1,200,000=120,000. 2019 dep=10%×(1,200,000−120,000)=108,000. 2020 dep=10%×(1,200,000−120,000−108,000)=97,200. 2021 dep=10%×(1,200,000−120,000−108,000−97,200)=87,480. Accumulated depreciation = 120,000+108,000+97,200+87,480 = D412,680.
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