Font size
WorksheetsDepreciation basics
Total questions: 10
Worksheet time: 6mins
Why do we depreciate assets?
They decline in value over time!
They become obsolete over time!
Wear and tear makes them less valuable!
All of the Above!
What are the two methods of depreciation we discussed in class? (select 2 answers)
Straight Line
Reducing increasing balance
Double declining balance
Years of Service deductions
What is one advantage of the double declining balance method?
Most of the depreciation happens later in the asset's life
Depreciation is consistent
More of the depreciation happens early in the asset's life
It eliminates all depreciation.
What is one advantage of the straight line method?
Most of the depreciation happens later in the asset's life
Depreciation is consistent
More of the depreciation happens early in the asset's life
It eliminates all depreciation.
Jo-Jo purchases a new machine for her business on January 1 of the current year. The cost is $8,700 and the residual value is $700. She estimates the useful life will be 5 years.
Using the straight line method, what will her first year depreciation be?
$8,000
$1,740
$1,600
$3,200
Jo-Jo purchases a new machine for her business on January 1 of the current year. The cost is $8,700 and the residual value is $700. She estimates the useful life will be 5 years.
Using the double declining balance method, what will her first year depreciation be?
$8,000
$1,740
$1,600
$3,200
Jo-Jo purchases a new machine for her business on January 1 of the current year. The cost is $8,700 and the residual value is $700. She estimates the useful life will be 5 years.
Using the straight line method, what will her second year depreciation be?
$8,000
$1,740
$1,600
$3,200
Jo-Jo purchases a new machine for her business on January 1 of the current year. The cost is $8,700 and the residual value is $700. She estimates the useful life will be 5 years.
Using the double declining balance method, what will her second year depreciation be?
$4,800
$1,920
$960
$3,200
Widgets-R-Us buys a widget making machine for $500,000 with a residual value of $50,000. The useful life of the machine is estimated to be 15 years.
Using the straight line method, what is the depreciation in the 3rd year?
$450,000
$30,000
$60,000
$90,000
Widgets-R-Us buys a widget making machine for $500,000 with a residual value of $50,000. The useful life of the machine is estimated to be 15 years.
Using the double declining value method, what is the depreciation in the 2nd year?
$270,000
$30,000
$36,000
$72,000
