Accounts (Principles of Accounts)Depreciation of non-current assetsWAEC
An asset costing ₦400,000 is depreciated at 20% a year on the reducing balance. Find the depreciation for the second year.
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Answer: B. ₦64,000
Year 1: ₦80,000, leaving ₦320,000; year 2: 20% × 320,000 = ₦64,000.
An AdmitMe practice question, written for the WAEC syllabus. Not an official past question.