WAEC Accounting 2017 Paper

Concept:Straight-line depreciation spreads the depreciable amount evenly over the useful life of the asset.Explanation:First, find the depreciable amount.Depreciable amount $=$ Cost $-$ Residual value.$= 112{,}000 - 16{,}000 = 96{,}000$Now divide this by the useful life of $6$ years.Annual depreciation $= \frac{96{,}000}{6} = < br> 16{,}000$Thus, the asset loses N16,000 in value each year.Answer:The annual depreciation is N16,000.Correct option: A. N16,000.