2 - Double Declining Balance Method
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Practice Questions
Test your understanding with targeted questions
What is the main purpose of the Double Declining Balance Method?
💡 Hint: Think about why businesses want more depreciation upfront.
How is the book value calculated at the start of the first year?
💡 Hint: Consider the components of the initial purchase.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Double Declining Balance Method primarily accelerate?
💡 Hint: Focus on what is affected during the asset's life.
True or False: The DDB method considers salvage value in calculations.
💡 Hint: Think about how DDB differs from other methods.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A machine costs ₹100,00,000 with tire costs of ₹10,00,000, expected to have a salvage value of ₹20,00,000 over 10 years. Calculate its depreciation over five years using DDB and determine if switching is required. Show your workings.
💡 Hint: Keep track of the book value each year!
Analyze a scenario where the DDB method results in a value lower than the salvage value. What steps must you take? Provide a detailed explanation and recalculation.
💡 Hint: Think about accounting practices and financial health.
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