Us the following information to answer the question given. \(\begin{array}{c|c} \text{Cost of motor vehicle - 1\1\12} & ₦ 85,000 \\ \text{Residual value} & ...

Answer Details

To calculate the annual depreciation using the straight-line method, we need to subtract the residual value from the cost of the motor vehicle and then divide the result by the estimated useful lifespan. In this case, the cost of the motor vehicle is ₦85,000, and the residual value is ₦5,000. Therefore, the depreciable cost is ₦80,000 (₦85,000 - ₦5,000). The estimated useful lifespan is 10 years. Therefore, the annual depreciation is ₦8,000 (₦80,000 ÷ 10). So, the correct option is ₦8,000.