Use the following information to answer the giv... - WAEC Accounting 2004 Question
Use the following information to answer the given question,
\(\begin{array}{c|c} & N\ \hline \text{Purchase price of equipment} & 60,000\ \text{Freight and installation cost} & 10,000 \ \text{Annual maintenance cost} & 1,000\ \text{Estimated useful life - 5 years} & \ \text{Estimated scrap value} & 2000 \end{array}\)
Using reducing balance method at the rate of 20%. What is the depreciation charge for the second year?
\(\begin{array}{c|c} & N\ \hline \text{Purchase price of equipment} & 60,000\ \text{Freight and installation cost} & 10,000 \ \text{Annual maintenance cost} & 1,000\ \text{Estimated useful life - 5 years} & \ \text{Estimated scrap value} & 2000 \end{array}\)
Using reducing balance method at the rate of 20%. What is the depreciation charge for the second year?
A
N13,600
B
N11,200
C
N10,880
D
N9,600
correct option: b
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