Practice Depreciation Calculation for Year 1 - 2.1 | 6. Sum of the Years Digit Method | Construction Engineering & Management - Vol 1
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does the sum of the years' digits method emphasize?

💡 Hint: Think about how depreciation is calculated.

Question 2

Easy

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.

Practice 1 more question and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

Using SYD, Year 1 depreciation for an asset costing ₹8,200,000 is?

  • ₹1,280,000
  • ₹1,688,888
  • ₹12,800,000

💡 Hint: Recall the formula used in SYD calculations.

Question 2

True or False: The double declining balance method considers salvage value when estimating depreciation.

  • True
  • False

💡 Hint: Consider how DDB operates compared to SYD.

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Challenge Problems

Push your limits with challenges.

Question 1

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.

Question 2

Explain why an accountant might switch from SYD to straight-line in the later years.

💡 Hint: Consider financial strategies and reporting impacts.

Challenge and get performance evaluation