Questions on asset Depreciations

Submitted by steelproject2012 on Fri, 01/25/2013 - 12:27

Are we asked calculations on calcualting depreciation on assets?

Below is a sample question:

An asset is purchased on Mar 12th at a cost of $100,000 and is expected to have a salvage value of $15,000 at the end of its useful life of 10 years. What is the book value (using Double declining method) of the asset after 3years?

Thanks as i look forward to your invaluable contributions

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sspawar

Fri, 01/25/2013 - 14:00

Since long back depreciation based questions are not asked. Even Rita Has cleared about and given few guidance.


100000-15000=85000


10 yrs given , hence  100%/10=10% straight depreciation


double means 20%


 20%  of 85000 = 17000  in 1st year book value= 68000


20% of 68000 = 13600  in 2nd year book value  = 54400


20% of 54400 = 10880 in 3rd year book value  = 43520


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In my view this is directly not related to any body of knowledge.

steelproject2012

Sat, 01/26/2013 - 06:12

sspawer,

your input and the possible position of the exam on dpreciation well noted.

Thanks.

steelproject2012

Sat, 01/26/2013 - 10:30

No need for calculations on Depreciations.

Rita 4th Edtn Pg110: on Depreciatioon,  says, "The exam asks you what they are; YOU DO NOT HAVE TO PERFORM ANY CALCULATION"

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cnppmp

Mon, 05/27/2013 - 18:03

Hi


If you are preparing for the PMP exam, the double deprcaition and even straight line depreciation is not necessary. You need just know the Straight line depreciation & Accelerated Depreciation method for undersatnding purpose not for really calculation. If you are really interested in these problems and for any mathematical questions visit, Scribd.com web site


Thought will share this inof to you.


Regards


CN Patil, PMP