6.2 - Calculation Using Straight Line Method
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Practice Questions
Test your understanding with targeted questions
What are the two main types of equipment costs?
💡 Hint: Think of costs you pay regardless of usage versus those incurred when using the equipment.
Define depreciation in simple terms.
💡 Hint: What happens to the value of equipment as it ages?
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Interactive Quizzes
Quick quizzes to reinforce your learning
Which cost is incurred regardless of equipment usage?
💡 Hint: Think about which costs remain fixed.
True or False: The Straight Line Method allows for variable depreciation rates.
💡 Hint: Consider how the method calculates depreciation.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A crane bought for $500,000 has an estimated salvage value of $50,000 with a tire cost of $30,000. Calculate the annual depreciation using the Straight Line Method over 15 years.
💡 Hint: Use the given values and the Straight Line Method formula.
Discuss when it would be beneficial to use accelerated depreciation methods over the Straight Line Method in project accounting.
💡 Hint: Think about cash flow impacts!
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