Test Index

WAEC Agriculture 2015 Paper

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Question : 57

Total: 57

The annual depreciation of the implement is

#4,300
#3,125
#2,050
#1075

Solution:

Concept:

Annual depreciation is the yearly loss in value of an implement over its useful life.

Explanation:

Use the formula:

\text{Annual depreciation} = \frac{\text{Cost} - \text{Salvage value}}{\text{Useful life}}

Cost of the implement

= \#4,500

Salvage value

= \#200

Useful life

= 4

years

Depreciable amount

= \#4,500 - \#200 = \#4,300

\text{Annual depreciation} = \frac{\#4,300}{4} = \#1,075

Answer:

D.

\#1,075

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