Depreciation: Declining Balance and Sum-of-Years-Digit Methods — Engineering Board Exam Practice Questions

8 free engineering board exam reviewer questions on Depreciation: Declining Balance and Sum-of-Years-Digit Methods (Engineering Economics), each with the correct answer and a worked solution.

  1. A machine costs P200,000 with a salvage value of P20,000 and a life of 5 years. Using the declining balance method, find the depreciation…
  2. Using the declining balance method with rate 30%, find the depreciation charge for year 1 on an asset costing P100,000.
  3. Using the declining balance method with rate 30% on an asset costing P100,000, find the book value at the end of year 2.
  4. An asset has a useful life of 5 years. Find the sum-of-years digits used in the SYD depreciation method.
  5. An asset costs P50,000, has a salvage value of P5,000, and a useful life of 5 years. Using the sum-of-years-digit (SYD) method, find the…
  6. Using the SYD method for the asset above (Cost=P50,000, Salvage=P5,000, Life=5 years), find the depreciation charge for year 3.
  7. Using the SYD method for the asset above, find the book value at the end of year 2.
  8. Among straight-line, sinking fund, and declining balance methods, which typically produces the largest depreciation charge in the first…