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Which of the following is NOT a variable essential for calculating depreciation?
Which depreciation method allocates the same amount of expense each year?
What is the impact of using MACRS on a company's tax liability in the early years of an asset's life?
How does the choice of depreciation method affect a company's taxable income?
A company uses the double declining balance method for a machine with a cost of \$80,000, a residual value of \$8,000, and a useful life of 4 years. How does this choice impact the net book value at the end of year 2 compared to using the straight line method?
How do accelerated depreciation methods promote economic growth?
What is the impact of depreciation on a company's cash flow?
Why does the IRS permit accelerated depreciation methods like MACRS?
A company buys a computer system for \$50,000 with a residual value of \$5,000 and a useful life of 5 years. Calculate the depreciation expense for the first year using the double declining balance method.
A factory machine costs \$120,000, has a residual value of \$20,000, and is expected to produce 200,000 units. If it produces 50,000 units in the first year, what is the depreciation expense using the units of production method?