On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with
FINANCIAL
JAMB 1998
On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with an estimates eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8000. In recording this sales, it should reflect?
- A. N10,000 loss
- B. N2,000 loss
- C. N6,000 gain
- D. N8,000 gain
Correct Answer: B. N2,000 loss
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *