18.5 - Methods of Depreciation
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
Identify the Straight Line Method formula.
💡 Hint: What is the effect of the residual value?
What is the key feature of the WDV method?
💡 Hint: Think about how it changes over time.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for Straight Line Method?
💡 Hint: Which method evenly distributes depreciation?
Does WDV method lead to higher depreciation in earlier years?
💡 Hint: Consider how asset efficiency changes over time.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Calculate the depreciation for a machine that costs $150,000, with a residual value of $25,000 and a useful life of 15 years, using all four methods.
💡 Hint: Calculate each step methodically for better accuracy.
A company plans to use an asset for 8 years, costing $80,000 with a $10,000 residual value. Calculate depreciation using SLM, WDV, and Units of Production if used for 12,000 units in that year.
💡 Hint: Keep in mind to check unit production for accuracy quotients.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.