The accounting year of Fehintola Ltd. ends on 31st December every year. Pant and Machinery purchased on 1st January, Year 1 N600,000 Depreciation rate per anuum, 10% Scrap value, N60,000. Using the straight line method, what is the cumulative depreciation at the end of yr.3?

The accounting year of Fehintola Ltd. ends on 31st December every year. Pant and Machinery purchased on 1st January, Year 1 N600,000

Depreciation rate per anuum, 10%

Scrap value, N60,000. Using the straight line method, what is the cumulative depreciation at the end of yr.3?

The correct answer is C. N180,000

No explanation given