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CORE, FUR1 2018 VCAA 20 MC

The graph below shows the value, , of an asset as it depreciates over a period of five months.

Which one of the following depreciation situations does this graph best represent?

  1. flat rate depreciation with a decrease in depreciation rate after two months
  2. flat rate depreciation with an increase in depreciation rate after two months
  3. unit cost depreciation with a decrease in units used per month after two months
  4. reducing balance depreciation with an increase in the rate of depreciation after two months
  5. reducing balance depreciation with a decrease in the rate of depreciation after two months
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♦ Mean mark 39%.

CORE, FUR1 2017 VCAA 22 MC

Consider the graph below.
 

 
This graph could show the value of

  1. a piano depreciating at a flat rate of 6% per annum.
  2. a car depreciating with a reducing balance rate of 6% per annum.
  3. a compound interest investment earning interest at the rate of 6% per annum.
  4. a perpetuity earning interest at the rate of 6% per annum.
  5. an annuity investment with additional payments of 6% of the initial investment amount per annum.
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CORE*, FUR2 2013 VCAA 1

Hugo is a professional bike rider.

The value of his bike will be depreciated over time using the flat rate method of depreciation.

The graph below shows his bike’s initial purchase price and its value at the end of each year for a period of three years.
 

  1. What was the initial purchase price of the bike?   (1 mark)
    1. Show that the bike depreciates in value by $1500 each year.   (1 mark)
    2. Assume that the bike’s value continues to depreciate by $1500 each year.
    3. Determine its value five years after it was purchased.   (1 mark)

The unit cost method of depreciation can also be used to depreciate the value of the bike.

In a two-year period, the total depreciation calculated at $0.25 per kilometre travelled will equal the depreciation calculated using the flat rate method of depreciation as described above.

  1. Determine the number of kilometres the bike travels in the two-year period.   (1 mark)

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  2. i. 
    ii.

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a.  
  

b.i.   

 

  
b.ii.   

 

  
c.   

 

  

CORE*, FUR1 2015 VCAA 7 MC

The following graph shows the depreciating value of a van.
 

BUSINESS, FUR1 2015 VCAA 7 MC
 

The graph could represent the van being depreciated using

  1. flat rate depreciation with an initial value of $35 000 and a depreciation rate of $25 per year.
  2. flat rate depreciation with an initial value of $35 000 and a depreciation rate of 25 cents per year.
  3. reducing balance depreciation with an initial value of $35 000 and a depreciation rate of 2.5% per annum.
  4. unit cost depreciation with an initial value of $35 000 and a depreciation rate of 25 cents per kilometre travelled.
  5. unit cost depreciation with an initial value of $35 000 and a depreciation rate of $25 per kilometre travelled.
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CORE*, FUR1 2007 VCAA 5 MC

A new kitchen in a restaurant cost $50 000. Its value is depreciated over time using the reducing balance method.

The value of the kitchen in dollars at the end of each year for ten years is shown in the graph below.
 


 

Which one of the following statements is true?

A.  The kitchen depreciates by $4000 annually.

B.  At the end of five years, the kitchen's value is less than $20 000.

C.  The reducing balance depreciation rate is less than 5% per annum.

D.  The annual depreciation rate increases over time.

E.  The amount of depreciation each year decreases over time.

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