Use the following information to answeer questions below

Kako Ltd bought a machine for D 1,200,000 on 1st January 2018. Depreciation was provided annually at a rate of 10% using the diminishing balance method. The machine was sold for D 880,000 on 31st December 2021.

The accumulated depreciation as at the date of disposal was

  • A D 480,000
  • B D 325,200
  • C D 320,000
  • D D 412,680
waec 2022accounting

The correct answer is B. D 325,200

From 2018 to 2021 (accounting year) is three (3) years
  D
Cost 1200000
Year 1 ( 10% x 1200000) 120000
  1080000
Year 2 ( 10% x 1080000) 108000
  972000
Year 3 ( 10% x 972000) 97200
Depreciation 874800
Accumulated depreciation = 1,200,000 - 874,800 = 325,200 Previous question Next question