Practice Depreciation Calculation for the Ninth Year - 1.3 | 6. Sum of the Years Digit Method | 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.

Practice Questions

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

Interactive Quizzes

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?

  • (n/N) * (Cost - Salvage)
  • (N/n) * (Cost - Tire)
  • n * Cost - Salvage

💡 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.

  • True
  • False

💡 Hint: Think about how different depreciation methods treat salvage value.

Solve 1 more question and get performance evaluation

Challenge Problems

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