Practice Straight Line Method - 5.1 | 5. Construction Methods and Equipment Management | Construction Engineering & Management - Vol 1
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is depreciation?

💡 Hint: Think about the wear and tear on a machine.

Question 2

Easy

List the components needed to calculate straight line depreciation.

💡 Hint: Consider what information you'd need about the equipment.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the formula for calculating annual depreciation using the Straight Line Method?

💡 Hint: Remember DICer!

Question 2

The Straight Line Method assumes depreciation occurs at what rate?

  • Accelerated
  • Uniform
  • Declining

💡 Hint: Consider what happens each year in value.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company buys a crane for $200,000. The crane’s salvage value is $30,000, and it has a useful life of 15 years. Also, tire costs are $10,000. Calculate the annual depreciation. How might this impact their financial reports over the years?

💡 Hint: Substitute everything correctly into the formula.

Question 2

Consider a construction company that uses a backhoe for 10 years, initially costing $50,000, with a salvage value of $5,000 and a tire cost of $5,000. If they switch to an accelerated depreciation method, how would that affect their immediate tax obligations compared to the Straight Line Method?

💡 Hint: Consider how each method tracks loss and how that impacts financial statements.

Challenge and get performance evaluation