Practice Depreciation Calculation for the First Year - 1.1 | 6. Sum of the Years Digit Method | Construction Engineering & Management - Vol 1
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1.1 - Depreciation Calculation for the First Year

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the Sum of the Years' Digits method used for?

💡 Hint: Think about how asset value decreases over time.

Question 2

Easy

How do you calculate the book value of an asset?

💡 Hint: Consider what happens to value as depreciation accumulates.

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 does the Sum of the Years' Digits method focus on?

  • Book value reduction
  • Total years of useful life
  • Assets' immediate value

💡 Hint: Think about how the value diminishes over time.

Question 2

True or False: The Double Declining Balance method considers salvage value in its calculations.

  • True
  • False

💡 Hint: Recall the focus of DDB method regarding book value.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

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.

Question 2

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.

Challenge and get performance evaluation