The accounting year of Fehintola Ltd. ends on 31st December every year.

Pant and Machinery purchased on 1st January, Year 1 N600,000

Depreciation rate per annum, 10%

Scrap value, N60,000.

 

Using reducing balance method, what is the depreciation for Yr. 2?

A. N160,000

B. N114,000

C. N60,000

D. N54,000

E. N48,000

Correct Answer: Option B

B. N114,000