1.1 - Depreciation Calculation for the First Year
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
What is the Sum of the Years' Digits method used for?
💡 Hint: Think about how asset value decreases over time.
How do you calculate the book value of an asset?
💡 Hint: Consider what happens to value as depreciation accumulates.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Sum of the Years' Digits method focus on?
💡 Hint: Think about how the value diminishes over time.
True or False: The Double Declining Balance method considers salvage value in its calculations.
💡 Hint: Recall the focus of DDB method regarding book value.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Calculate the depreciation for the first three years using both SYD and DDB methods for an asset with an initial cost of ₹9,000,000, tire cost of ₹500,000, and a salvage value of ₹1,500,000 over a useful life of 5 years.
💡 Hint: For SYD, remember to apply the method correctly to each year by applying the fraction from the sum of the years.
Determine the point at which switching from DDB to a straight-line method would be beneficial in the scenario of an asset costing ₹10,000,000 with a tire cost of ₹1,000,000 over 8 years.
💡 Hint: Calculate the diminishing values year-over-year and compare them to salvage value.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.