2.1 - Depreciation Calculation for Year 1
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Practice Questions
Test your understanding with targeted questions
What does the sum of the years' digits method emphasize?
💡 Hint: Think about how depreciation is calculated.
Calculate the Year 1 depreciation using the double declining balance method for an asset with a book value of ₹7,600,000.
💡 Hint: Remember to apply 2/n, where n is the remaining useful life.
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Interactive Quizzes
Quick quizzes to reinforce your learning
Using SYD, Year 1 depreciation for an asset costing ₹8,200,000 is?
💡 Hint: Recall the formula used in SYD calculations.
True or False: The double declining balance method considers salvage value when estimating depreciation.
💡 Hint: Consider how DDB operates compared to SYD.
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Challenge Problems
Push your limits with advanced challenges
An asset purchased for ₹50,000 has a salvage value of ₹5,000 and a recovery period of 5 years. Calculate Year 1 depreciation using both methods and discuss which option provides greater benefit.
💡 Hint: Calculate both and compare the deductions.
Explain why an accountant might switch from SYD to straight-line in the later years.
💡 Hint: Consider financial strategies and reporting impacts.
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