DRAG DROP - A company is implementing Microsoft Dynamics 365 Finance. The company is configuring the fixed asset functionality and has the following requirements: ✑ Manually add an additional depreciation amount the first year a machine is put in service. ✑ Depreciate a company vehicle based on the number of miles it has traveled. You need to configure the depreciation for the assets. Which depreciation method should you use? To answer, drag the appropriate depreciation methods to the correct assets. Each method may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point. Select and Place:Suggested Answer:
Box 1: Bonus - Manually add an additional depreciation amount the first year a machine is put in service. For bonus depreciation, you can take extra or bonus depreciation amounts during the first year that the asset is put in service and depreciated. Bonus depreciation must be taken before any other depreciation calculations. Box 2: Consumption - Depreciate a company vehicle based on the number of miles it has traveled. If you set up a depreciation profile for fixed assets and select Consumption in the Method field on the Depreciation profiles page, fixed assets are assigned to the depreciation profile based on their usage. You don't have to set up percentages and intervals on the Depreciation profiles page. After you create a depreciation profile that uses the Consumption method, you can set up the method in various ways. Incorrect: * When you set up a fixed asset depreciation profile and select 150% 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. This 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 30 percent (150% ֳ· 5). * 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. The difference in the depreciation amount that is calculated between straight line service life remaining and straight line service life is when there is an adjustment posted to the asset. To set up straight line service life depreciation, you must also select options in the Depreciation year and Period frequency fields in the Depreciation profiles page. Reference: https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/bonus-depreciation https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/consumption-depreciation This question is in MB-310 Microsoft Dynamics 365 Finance Exam For getting Microsoft Certified: Dynamics 365 Finance Functional Consultant Associate Certificate Disclaimers: The website is not related to, affiliated with, endorsed or authorized by Microsoft. The website does not contain actual questions and answers from Microsoft's Certification Exams. Trademarks, certification & product names are used for reference only and belong to Microsoft.
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