JAMB - Accounts Principles Of Accounts (2019 - No. 24)

The cost of a machine is ₦10,000. The residual value is ₦4,000. It is expected to last for 4 years. Using the straight line method, what is the amount of depreciation charged per annum?
6000
1000
1500
2500

Explanation

The formula to be adopted is :
cost - estimated value
years of useful life

10,000 - 4000 = 1500
  4

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