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  • Depreciation

    • Straight Line Depreciation Page
      2017-22-eco
      The cost of a new pump (including installation) is $ 24,000. The pump has a useful life of 10 years. Its salvage value is $ 4000. Assuming straight line depreciation, the book value of the pump at the end of 4th year, rounded to the nearest integer, is $ _______
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    • Double Declining Balance Method Page
      2009-45-eco
      A column costs Rs. 5.0 lakhs and has a useful life of 10 years. Using the double declining balance depreciation method, the book value of the unit at the end of five years (in lakhs of Rs.) is
      1. 1.21
      2. 1.31
      3. 1.64
      4. 2.05
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    • Textbook Declining Balance Method Page
      2005-72-eco
      The original value of an equipment is $ 10000. The salvage value is $ 500 at the end of its useful life period of 5 years. What is the asset value in dollars after two years by textbook declining balance method?
      1. 3025
      2. 4010
      3. 5020
      4. 6050
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    • Declining Balance Method - Example-1 Page
      2011-45-eco
      A process plant has a life of 7 years and its salvage value is 30%. For what MINIMUM fixed percentage factor will the depreciation amount for the second year, calculated by declining balance method be EQUAL to that calculated by the straight line depreciation method?
      1. 0.1
      2. 0.113
      3. 0.527
      4. 0.887
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    • Declining Balance Method - Example-2 Page
      PI-2015-57-eco
      A machine is bought for $ 2,500,000. The organization follows a declining balance method of depreciation with a depreciation charge of 25%. If the machine is sold at $ 1,750,000 at the end of 2 nd year, then the profit on the book, in $, is ________
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    • Sum of Years Digits Method Page
      2001-2-22-eco
      \(P\) is the investment made on an equipment, \(S\) is its salvage value and \(n\) is the life of the equipment in years. The depreciation for the \(m^{\text{th}}\) year by the Sum-of-Years-Digits method will be
      1. \(\displaystyle \frac{P-S}{n}\)
      2. \(\displaystyle 1-\left(\frac{P}{S}\right)^{\frac{1}{m}}\)
      3. \(\displaystyle \frac{m}{n}(P-S)\)
      4. \(\displaystyle \frac{2(n-m+1)}{n(n+1)}(P-S)\)
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    • Sinking Fund Method of Depreciation Page
      1991-10-ii-b-eco
      A reactor having a salvage value of Rs. 10,000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80,000. The book value of the reactor after 5 years using sinking fund depreciation method will be:
      1. Rs. 53,196
      2. Rs. 43,196
      3. Rs. 40,096
      4. Rs. 60,196
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