WAEC Accounting 2023 Objective — Question 15

Question 15 of 50 from the West African Examinations Council (WAEC) Accounting 2023 Objective paper, with the correct answer and a full explanation.

(Sammy acquired plant and machinery costing #12,000 with an estimated useful life of 4 years and residual value of #2,000. The sum of the years' digits method is used.) The depreciation to be charged for the third year will be

A. #4,000.
B. #3,000.
C. #2,000.Correct
D. #1,000.

Explanation

Depreciable amount = 12,000-2,000 = #10,000; sum of digits (4+3+2+1) = 10; year 3 factor = 2/10 → 2/10 × 10,000 = #2,000.

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