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 (Years) | Salvage value (N) | Annual depreciation (N) | Total depreciation |
| 20000 | Y | 5000 | 1000 annum | 15000 |
| 60000 | 10 | 18000 | 4200 annum | Z |
The total depreciation represented by Z in the illustrated table is
- A. N 42,000
- B. N 78,000
- C. N 22,200
- D. N 55,800
Correct Answer: A. N 42,000
Explanation
Cost Price (N) = 60000
Salvage value (N) = 18000
Annual depreciation (N) = 4200
Useful life (Years) = 10
The formula to calculate the total depreciation is:
Total depreciation = (Cost Price - Salvage value) / Useful life
Now, let's plug in the values:
Total depreciation = (60000 - 18000) / 10
Total depreciation = 42000 / 10
Total depreciation = 4200
Therefore, the total depreciation represented by Z in the table is N 42,000.
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