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
The correct answer is B. D 325,200
From 2018 to 2021 (accounting year) is three (3) years
Accumulated depreciation = 1,200,000 - 874,800
= 325,200
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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 |
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