A farmer purchased a sprayer for N12,500 in 1974, at the end of the fourth year, he sold it for N4,300. The total depreciation is

Answer Details

The total depreciation of the sprayer is N8,200. Depreciation refers to the decrease in the value of an asset over time due to wear and tear or obsolescence. To calculate the total depreciation of the sprayer, we need to determine the annual depreciation rate and multiply it by the number of years the farmer owned the sprayer. Annual depreciation rate = (Purchase price - Sale price) / Useful life Useful life = 4 years (since the sprayer was sold at the end of the fourth year) Purchase price = N12,500 Sale price = N4,300 Annual depreciation rate = (N12,500 - N4,300) / 4 = N2,050 Total depreciation = Annual depreciation rate x Number of years Total depreciation = N2,050 x 4 = N8,200 Therefore, the total depreciation of the sprayer is N8,200.