The cost of a machine is ₦10,000. The residual value is ₦4,000. It is expected to last for 4 years. Using the straight line method, what is the amount of depreciation charged per annum?
- 6000
- 1000
-
1500
- 2500
The correct answer is: C
Explanation
The formula to be adopted is :
cost - estimated value
years of useful life
10,000 - 4000 = 1500
4