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