Depreciation on a particular piece of machinery was N2,700 during the fifth year of its...
FINANCIAL
JAMB 1999
Depreciation on a particular piece of machinery was N2,700 during the fifth year of its service life and N4,050 during the sixth year. The logical explanation for this is that?
- A. an addition was made to the asset during the sixth year
- B. the estimate of salvage value on this equipment was decreased
- C. a unit-of-output method of depreciation was used during the sixth year
- D. the estimate remaining service life of the assets was increased at the beginning of the sixth year
Correct Answer: A. an addition was made to the asset during the sixth year
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