Under the reducing balance method, a motor vehicle costing ₦200,000 is depreciated at 20% per annum. What is the net book value at the end of Year 2?

Year 1 depreciation = 20% × ₦200,000 = ₦40,000; NBV after Year 1 = ₦160,000. Year 2 depreciation = 20% × ₦160,000 = ₦32,000; NBV after Year 2 = ₦128,000. Option D is the NBV after Year 1 only. Option A incorrectly applies 20% on cost twice (₦200,000 × 20% × 2 = ₦80,000 deducted), and Option C is a common arithmetic error.