A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.
If the scrap value is presently N15,000, what will be the yearly depreciation using the straight line method?
-
N4,000
- N7,000
- N11,000
- N24,000
The correct answer is: A
Explanation
\(35000 - 15000\) = \(20000 \times\frac{1}{5}\)
= N4000