Question on: JAMB Accounting - 2024
The following extracts are made from the books of Agama Enterprises:
Motor van (cost): 120000
Life span: 4 years
Rate of depreciation: 40%
Method: Diminishing Balance
The depreciation charge for year two is:
A
#28,800
B
#48,000
C
#17,280
D
#10,370
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Correct Option: A
Year 1:
Depreciation = 120000 × 40% = 48000
Book value = 120000 − 48000 = 72000
Year 2:
Depreciation = 72000 × 40% = 28800
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