WAEC Agriculture 2023 Paper

Concept:The total depreciation represented by $Z$ is the total loss in value over the whole useful life of the asset.It is calculated as the difference between the cost price and the salvage value.Explanation:From the table:Cost price $= N\,60,000$Salvage value $= N\,18,000$Useful life $= 10$ yearsAnnual depreciation $= N\,4,200$Total depreciation is given by the formula:$Z = \text{Cost price} - \text{Salvage value}$Substitute the values:$Z = N\,60,000 - N\,18,000$$Z = N\,42,000$This means the asset loses $N\,42,000$ in value over its useful life.When spread over 10 years, the annual depreciation is $\frac{N\,42,000}{10} = N\,4,200$, which agrees with the table.Answer:$Z = N\,42,000$