Use the information below to answer the question that follows, A machine bought for ₦35,000 was estimated to have a life span of 5years with a scrap value o...
Question 1 Report
Use the information below to answer the question that follows,
A machine bought for ₦35,000 was estimated to have a life span of 5years with a scrap value of ₦9,000.
The yearly depreciation using the straight line method would be?Answer Details
The straight line method of depreciation is a simple calculation method where the total cost of a machine is spread evenly over its lifespan. To calculate the yearly depreciation using this method, you first subtract the scrap value from the cost of the machine. In this case, ₦35,000 - ₦9,000 = ₦26,000.
Next, you divide the result from step 1 by the number of years in the machine's lifespan. In this case, ₦26,000 / 5 years = ₦5,200 per year.
So, the yearly depreciation using the straight line method is ₦5,200.
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