What is the amount of depreciation charged in 2018 after adjusting the useful life of the plant as described in Q3?

A. ₦30,000
B. ₦52,500
C. ₦60,000
D. ₦67,500
E. ₦80,000

Answer:
E. ₦80,000

Explanation:
The plant’s original carrying amount at the end of 2018 was ₦240,000, based on an original depreciation charge of ₦60,000 (₦300,000 ÷ 10 years). After adjusting the useful life to five years, the remaining carrying amount is depreciated over the revised three years, resulting in an annual charge of ₦80,000 (₦240,000 ÷ 3 years).