Practice - Methods of Calculating Depreciation
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Practice Questions
Test your understanding with targeted questions
Define the Straight-Line Method of depreciation.
💡 Hint: Think of how the cost is divided equally over time.
Explain the Written Down Value Method in a sentence.
💡 Hint: Consider how it changes each year.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the Straight-Line Method of depreciation?
💡 Hint: Think about consistency in reporting.
True or False: The Written Down Value Method typically results in higher depreciation expenses in the later years.
💡 Hint: Consider how the percentage is applied.
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Challenge Problems
Push your limits with advanced challenges
A piece of machinery is purchased for ₹200,000 and has a salvage value of ₹20,000 with a useful life of 10 years. Calculate the annual depreciation using Straight-Line, Written Down Value (15%), and Sum of the Years' Digits methods.
💡 Hint: Remember to apply each method's formula accurately.
An asset has a cost of ₹150,000 with a salvage value of ₹15,000 and a lifespan of 5 years. How would you calculate the depreciation using the Sum of the Years' Digits? Provide the first year's depreciation expense.
💡 Hint: Focus on the sum of the digits and be precise with the fractions.
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