Use the information below to answer question An asset was purchase for ₦343m in 2003. The estimated life of the asset was 3 years with a residual value of ₦...

Use the information below to answer question An asset was purchase for ₦343m in 2003.

The estimated life of the asset was 3 years with a residual value of ₦28m.Using the straight method. The depreciation of the asset in the first year was?

Answer Details

To calculate the depreciation of an asset using the straight-line method, you subtract the residual value from the initial cost and divide the result by the estimated life of the asset in years. So, for this asset: - The initial cost was ₦343m - The estimated life of the asset was 3 years - The residual value was ₦28m Subtracting the residual value from the initial cost gives: ₦343m - ₦28m = ₦315m Dividing ₦315m by the estimated life of the asset gives us: ₦315m / 3 years = ₦105m per year Therefore, the depreciation of the asset in the first year using the straight-line method is ₦105m. So, the correct answer is option C: ₦105m.