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Depreciation on a particular piece of machinery was ₦2,700 during the fifth ye...


Question

Depreciation on a particular piece of machinery was ₦2,700 during the fifth year of its service life and ₦4,050 during the sixth year. The logical explanation for this is that?

Options

A)
an addition was made to the asset during the sixth year
B)
the estimate of salvage value on this equipment was decreased
C)
a unit-of-output method of depreciation was used during the sixth year
D)
the estimate remaining service life of the assets was increased at the beginning of the sixth year

The correct answer is A.


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