Emeka Enterprises bought a delivery van for ₦1,200,000 on 1 April 2022. The company's policy is to depreciate vehicles at 20% per annum on cost, with a full year's depreciation charged in the year of purchase. The financial year ends 31 December. What is the accumulated depreciation at 31 December 2023?

Since a full year's depreciation is charged in the year of purchase regardless of the date of acquisition, annual depreciation = 20% × ₦1,200,000 = ₦240,000. For Year 1 (2022) = ₦240,000 and Year 2 (2023) = ₦240,000; accumulated depreciation at 31 December 2023 = ₦480,000. Option A reflects only one year's charge. Option C would result from charging 9 months in 2022 and a full year in 2023, which contradicts the stated policy.