Accounts (Principles of Accounts)Depreciation of non-current assetsJAMB
A machine costing ₦600,000 is depreciated at 20% per annum on the reducing balance. Its net book value at the end of year 2 is
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Answer: A. ₦384,000
Year 1: 600,000 × 0.8 = 480,000; year 2: 480,000 × 0.8 = ₦384,000.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.