JAMB Accounts Principles of Accounts 2021 Paper

Question : 22

Total: 38

Solution:

Concept:

Straight-line depreciation spreads the depreciable amount evenly over the asset’s useful life.

Explanation:

Depreciable amount = Cost − Scrap value.

Then divide by useful life:

\text{Depreciation} = \frac{\text{Cost} - \text{Scrap value}}{\text{Useful life}}

This matches option A.

Answer:

A. Cost-scrap value/useful life

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