Study the table below and use it to answer the question Cost Price (N) Useful...
AGRICULTURE
WAEC 2023
Study the table below and use it to answer the question
| Cost Price (N) | Useful Life (Life) | Salvage value (N) | Annual depreciation (N) | Total depreciation |
| 20000 | Y | 5000 | 1000 annum | 15000 |
| 60000 | 10 | 18000 | 4200 annum | Z |
The useful life represented by Y in the illustrated table is
- A. 3 years
- B. 4 years
- C. 15 years
- D. 20 years
Correct Answer: C. 15 years
Explanation
Cost Price (N) = 20000
Salvage value (N) = 5000
Annual depreciation (N) = 1000
Total depreciation = 15000
The formula to calculate the useful life is:
Useful life = (Cost Price - Salvage value) / Annual depreciation
Now, let's plug in the values:
Useful life = (20000 - 5000) / 1000
Useful life = 15000 / 1000
Useful life = 15 years
Therefore, the useful life represented by Y in the table is 15 years.
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