Exam MB-310 topic 5 question 10 discussion

HOTSPOT -
A company uses Dynamics 365 Finance to manage fixed assets. The company's fiscal year is set as the calendar year.
The company requires two books for each fixed asset. The company has the following requirements for the books:

You need to configure a fixed asset group book setup to meet the requirements.
Which depreciation conventions and depreciation profiles should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:

Suggested Answer:
Box 1: None -
You can select either Calendar or Fiscal in the Depreciation year field in the Depreciation profiles page. The selection defines the options that are available in the
Period frequency field.
If you select Fiscal in the Depreciation year field, the straight line service life depreciation is used. It is calculated based on the fiscal year, which is defined by the fiscal calendar that is specified for the book, or by the fiscal calendar that is selected in the Ledger page. Fiscal calendars are set up in the Fiscal calendars page.
Note: If you select Calendar, you can select from the following depreciation conventions.

Half year -

Full month -

Mid quarter -
Mid month (1st of month)
Mid month (15th of month)
Half year (start of year)
Half year (next year)
Box 2: Straight line service life - Fiscal period
When you set up a fixed asset depreciation profile and select Straight line service life in the Method field in the Depreciation profiles page, the assets that have this depreciation profile assigned to them are depreciated based on the total service life of the asset. This generally is the same depreciation amount in each depreciation period.
You can select either Calendar or Fiscal in the Depreciation year field in the Depreciation profiles page.
Incorrect:
Not Straight line life remaining:
When you set up a fixed asset depreciation profile and select Straight line life remaining in the Method field on the Depreciation profiles page, the depreciation of fixed assets that are assigned to the depreciation profile is based on the remaining service life of the asset.
Box 3: Half year (start of year)
Box 4: 200% reducing balance - Yearly
To set up 200% reducing balance depreciation, you must also select options in the Depreciation year field and the Period frequency field on the Depreciation profiles page. The options that are available in the Period frequency field vary, depending on the value that you select in the Depreciation year field.
Reference:
https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/depreciation-methods-conventions https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/straight-line-service-life-depreciation https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/200-percent-reducing-balance-depreciation