ZJSG09112007
Answered

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A company depreciate motor vehicle at 5% per annum. What will be the book value at the end of 3 years of a car which was bought at N250,500.00 ? Supposedly the company sells the car for 220,300.00 did it make profit or loss? How much ?​

Sagot :

mhanifa

Answer:

  • 5527.56 profit

Step-by-step explanation:

Given:

  • Initial value = 250500
  • Rate of depreciation = 5%
  • Time = 3 years

The value of the car after 3 years:

  • 250500*(1 - 5/100)³ = 214772.44

The company will make a profit:

  • 220300 - 214772.44 = 5527.56
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