Scribd
Upload
1K views

SOYD

This document contains 10 multiple choice questions regarding calculating book values and depreciation amounts for various assets using the declining balance and sum-of-years' digits (SOYD) depreciation methods. The questions provide details on asset costs, salvage values, useful lives, and time periods, and ask the learner to choose the correct book value or depreciation amount based on the given depreciation method.

Uploaded by

Nathan Dungog
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
1K views

SOYD

This document contains 10 multiple choice questions regarding calculating book values and depreciation amounts for various assets using the declining balance and sum-of-years' digits (SOYD) depreciation methods. The questions provide details on asset costs, salvage values, useful lives, and time periods, and ask the learner to choose the correct book value or depreciation amount based on the given depreciation method.

Uploaded by

Nathan Dungog
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

1.

An equipment has a first cost of P10, 000 a salvage value of P1000 at the end of
10years.Determine the book value after 5 years using declining balance method.

a) P3162.3
b) P3454.7
c) P4162.1
d) P3862.3

2. An asset is purchased for P7, 500.It estimated life is 8 years after which it will be
sold for P1500. Find the book value during the first year sum-of -years digit
(SYD) depreciation is used.

a) P5678.9
b) P6166.7
c) P6713.5
d) P6785.2

3. A generator has a first cost of P395, 000 installation cost of P25, 000 has an
estimated salvage value of P25, 000 after 5 years. Using sum of the year digits
method, determine the book value after 4 years.

a) P30,199.33
b) P16, 789.89
c) P51, 333.33
d) P23456.98

4. A company purchase an asset for P15, 000 and plans to keep it for 18 years. If
the salvage value is zero at the end 18 th year. What is the depreciation in the 4 th
year? Use SOYD?
a) P1,315.79
b) P3, 873.45
c) P4,78.91
d) P1,323.45

5. An equipment has a first cost of P25, 000 has a salvage value of 3000 after 8
years. What is the depreciation after 4 years using declining balance method?
a) P16,339.7
b) P12,628.16
c) P13,124.9
d) P12567.8

6. A large corporation has purchased a jet plane for use its executives. The cost of
the plane is P86million.It has a useful life of 10years.The estimated resale value
at the end of 10 years is 8 million pesos .Using the SOYD, what is the book value
of the jet plane at the end of 4 years?
a) P46M
b) P65M
c) P38M
d) P49M

7. ABC corporation makes it a policy that for any new equipment purchased, the
annual depreciation cost should not exceed 30% of the first cost at any time with
no salvage value .Determine the length of service life necessary if the
depreciation used is the SYD method.

a) 9yrs.
b) 6yrs.
c) 10yrs.
d) 5yrs.

8. An asset is purchased is ten times its salvage value .Its estimated life is 10
years, after which it will be sold for P12,000.Find the depreciation for the first
year using the SOYD method.
a) P20,678
b) P18,567
c) P23,897
d) P19,637

9. A machine that has a life of 5 years will have a salvage value of P15, 000.If the
first cost is P80,000 ,determine the book value after 3 years using SOYD
method.

a) P32,000
b) P35,000
c) P28,000
d) P34,000
10. ABC corporation makes it policy that for any new equipment purchased ,the
length of service must be nine years .Find the ratio between annual depreciation
cost and first cost , if the salvage value is zero. Using SOYD method.

a) 35%
b) 25%
c) 20%
d) 40%

You might also like