Straight-line depreciation of a machine costing ₦500,000, residual ₦50,000, useful life 5 years:
A₦100,000/year
B₦90,000/yearCORRECT
C₦110,000/year
D₦50,000/year
CIBNFinancial Accounting
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Why the answer is B, and why the others tempt you.
(500,000 − 50,000) ÷ 5 = ₦90,000 per year.
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