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Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating depreciation using the Sum of the Years Digits method?
💡 Hint: Remember to sum the total of years.
Question 2
Easy
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.
Practice 4 more questions and get performance evaluation
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is the formula for the Sum of the Years Digits method?
💡 Hint: Focus on the relationship between the years and the overall life.
Question 2
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.
Solve 1 more question and get performance evaluation
Push your limits with challenges.
Question 1
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.
Question 2
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.
Challenge and get performance evaluation