Accounts (Principles of Accounts)Depreciation of non-current assetsJAMB
A van costing ₦800,000 is depreciated at 25% per annum on the reducing balance. The depreciation for the second year is
Show answer
Answer: A. ₦150,000
Year 1: 25% × 800,000 = 200,000, leaving 600,000; year 2: 25% × 600,000 = ₦150,000.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.