Practice Depreciation Calculation - 2.1 | 13. Estimating Equipment Cost Using Two Methods | Construction Engineering & Management - Vol 1
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

2.1 - 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.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is depreciation?

💡 Hint: Think about how assets lose value.

Question 2

Easy

How do you calculate annual depreciation?

💡 Hint: Remember the formula discussed in class.

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 depreciation?

  • Initial Price - Tire Cost
  • (Initial Price - Tire Cost - Salvage Value) / Useful Life
  • Initial Price + Tire Cost

💡 Hint: Look for the formula that includes division by useful life.

Question 2

True or False: Salvage value affects the calculation of depreciation.

  • True
  • False

💡 Hint: Consider how salvage value is used in the depreciation calculation.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a piece of equipment has a purchase price of ₹5 crore, a tire cost of ₹15 lakh, and a useful life of 10 years with a salvage value of ₹20 lakh, calculate the annual depreciation and the hourly depreciation assuming 1600 hours of operation per year.

💡 Hint: Use the formula for annual depreciation and then divide by annual hours of operation.

Question 2

An excavator has an initial cost of ₹4 crore, working for 2000 hours annually, with a tire cost of ₹10 lakh and an expected useful life of 12 years. Calculate the total hourly cost, assuming 2% insurance, 3% taxes, and 8% interest.

💡 Hint: Break it down into ownership and operating cost to solve.

Challenge and get performance evaluation