Exam MB-310 topic 5 question 11 discussion

HOTSPOT -
A company is configuring the Microsoft Dynamics 365 Finance Fixed asset module.
You must configure depreciation for fixed assets. The company has the following assets and requirements:

You need to configure the assets to meet the depreciation requirements.
Which depreciation method 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: Double declining balance -
When you set up a fixed asset depreciation profile and select 200% reducing balance in the Method field on the Depreciation profiles page, fixed assets that are assigned the depreciation profile are depreciated by the same percentage in each depreciation period. The percentage is calculated based on the service life of the asset. For example, if an asset has a service life of five years, the percentage is calculated as 40 percent (200% ֳ· 5).
This method is also known as double declining balance.

Box 2: Straight line -
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.
Reference:
https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/200-percent-reducing-balance-depreciation https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/straight-line-service-life-depreciation