Administration and Executive AssistantTier 530 minadvanced

Straight-Line vs Declining-Balance Depreciation

Apply the right depreciation method to the right asset, and explain why the methods are not interchangeable.

What you will learn

• Calculate straight-line depreciation with SLN, using cost, salvage value and useful life
• Calculate declining-balance depreciation with DDB for a given period
• Explain why applying the wrong method still produces a plausible-looking, wrong number

Excel skills

SLN, DDB · Asset Depreciation

The task

Ten assets are going onto the register, each with its depreciation method already decided by finance policy - it's in the Method column. Work out year 1 depreciation for each one, using the method that row actually specifies.

You work in a real spreadsheet in your browser, and your answer is checked against hidden traps the moment you submit.

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