Education Technology

Depreciation

Published on 06/09/2008

Activity Overview

In this activity, students perform computations involving depreciation of assets. They will study methods such as Straight line depreciation, Sum of the digits method and Double declining balance depreciation.

Before the Activity

  • See the attached PDF file for detailed instructions for this activity
  • Print pages 29 - 34 from the attached PDF file for your class
  • During the Activity

    Distribute the pages to the class.

    Follow the Activity procedures:

  • Using Straight line depreciation method calculate the values and the new basis for each year's depreciation
  • Create a table listing the years, adjusted bases for consecutive years, and the annual depreciation
  • Using Sum of the Digits method, prepare a depreciation table listing the year, fraction of basis taken as depreciation for each year, depreciation, and the basis at the end of each year
  • Calculate the Double Declining Balance depreciation for an asset
  • Prepare a table listing the years, declining balance, and the depreciation allowed
  • After the Activity

    Review student results:

  • As a class, discuss questions that appeared to be more challenging
  • Re-teach concepts as necessary