Lesson ProgressPhase 5 of 6
Phase 5Assessment
Assessment: Method Comparison and Investor-Ready Summary
Technical check on workbook logic and a short artifact task defending a depreciation method recommendation
✅ Phase 5: Assessment
Method Comparison & Workbook Logic Check
Show your understanding of depreciation method comparison, workbook checks, and statement impact.
1. A $20,000 asset with a 5-year life and $2,000 salvage value. What is the Year 1 DDB expense?
2. Why does DDB show lower net income than SL in Year 1?
3. What is the total depreciation over the asset's life under SL vs DDB?
4. Your DDB schedule shows a book value of $500 below salvage value in the final year. What went wrong?
5. An investor asks why TechStart uses straight-line. The best evidence-based answer is:
0 of 5 questions answered
Artifact Task: Depreciation Method Recommendation Memo
Write a short memo (3-5 sentences) to Sarah recommending a depreciation method for TechStart's new delivery van ($30,000 cost, 5-year life, $5,000 salvage value). Use evidence from your comparison workbook.
Your memo should include:
- Claim: Which method do you recommend and why?
- Evidence: Cite at least two numbers from your comparison workbook (e.g., Year 1 expense difference, book value difference)
- Risk: What is one limitation or risk of your recommended method?
Example structure:
"I recommend straight-line depreciation for the delivery van because [reason]. Our comparison workbook shows that DDB would expense $[amount] more in Year 1, reducing reported profit by [amount]. However, [risk/limitation]."
Professional standard: A good recommendation uses workbook evidence, not opinion. Cite specific numbers from your comparison sheet.