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motor car costing ₦10,000 was depreciated at 20 per cent anuum by the diminish...


Question

motor car costing ₦10,000 was depreciated at 20 per cent anuum by the diminishing balance method. Two years late, it was sold for ₦6,000. The net result of the sale was

Options

A) ₦6,400 profit

B) ₦6,000 loss

C) ₦4,000 loss

D) ₦400 profit

E) ₦400 loss

The correct answer is E.


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