1.3 - Depreciation Calculation for the Ninth Year
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Practice Questions
Test your understanding with targeted questions
What is the formula for calculating depreciation using the Sum of the Years Digits method?
💡 Hint: Remember to sum the total of years.
Define salvage value in the context of asset depreciation.
💡 Hint: Think of it as what you can sell the asset for after it is no longer useful.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for the Sum of the Years Digits method?
💡 Hint: Focus on the relationship between the years and the overall life.
True or False: The Double Declining Balance method factors in the salvage value of an asset.
💡 Hint: Think about how different depreciation methods treat salvage value.
1 more question available
Challenge Problems
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Given a machine with a starting cost of ₹85,00,000 and a salvage value of ₹15,00,000. Using SYD, calculate the depreciation for the sixth year of its nine-year useful life.
💡 Hint: Use the years remaining from the sixth year.
A business uses the DDB method, and its accumulated book value has dropped below the expected salvage value at year three. Calculate how they can effectively switch to straight-line without losing value.
💡 Hint: Track adjustments against the book value and salvage expectations.
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