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4 cards from this section. Quick, good the night before a test.
Define 'salvage value'.
Consider what an asset is expected to be worth after it's no longer usable.
What is book value?
Think of it as the net worth of the asset.
What does SYD stand for?
Think about how years are used in the calculation.
True or False: DDB considers salvage value when calculating depreciation.
Recall how DDB operates during its calculations.
A factory purchases a machine for ₹15,000,000, with a salvage value of ₹1,500,000, and a life expectancy of 10 years. Calculate the depreciation for the first three years using SYD.
Remember to sum the digits first!
If a company decides to switch from DDB to straight-line after year 5 because of low book value, detail the necessary steps for the transition.
Think about how to find the accurate book value first at the end of year 5.
5 more questions in this section. Enroll free to practise them all.
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