3.2 - Depreciation Calculation
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
Define economic life in your own words.
💡 Hint: Think about how costs and machine performance relate.
What is depreciation?
💡 Hint: Consider how machines lose value over time.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is economic life?
💡 Hint: Think about how costs change over time.
True or False: Depreciation reflects a loss in an asset's value over time.
💡 Hint: Consider how assets are valued over time.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
If a machine is purchased for ₹10,00,000, with a salvage value of ₹1,00,000 and a useful life of 10 years, calculate the yearly depreciation using the straight-line method and assess potential impacts of inflation.
💡 Hint: Think about how inflation compounds over time.
Explain how a change in technology could influence the obsolescence of machinery and your decision to replace it.
💡 Hint: Consider the market competitiveness and technological advancements.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.