An organization purchased a piece of equipment for N112,000. It is expected to be used for 6 years then sold for N16,000. What is the annual amount of depreciation, if the straight-line method is used?
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Correct Answer: Option A
Explanation:
\(\frac{112,000 - 16,000}{6}\)
= 16,000
\(\frac{112,000 - 16,000}{6}\)
= 16,000