A farmer bought a farm implement for ₦12,500 in 2007. At the end of the fourth year, he sold it for ₦4,300. The annual depreciation of the implement is
- ₦4,300
- ₦3,125
-
₦2,050
- ₦1,075
The correct answer is: C
Explanation
Cost price in 2007 - ₦12,500
Year of usage = 4 years
Selling Price = ₦4,300
Annual Depreciation \(\frac{₦12,500 - ₦4,300}{4}\)
= \(\frac{₦8,200}{4}\) = ₦2,050