Math-in-CTE Lesson Plan Template
Lesson Title: Accumulated Depreciation – The Straight Line
Method
Author(s):
Phone Number(s):
Richard Glueck
201-306-8618
Marc Foti
201-390-4527
Lesson #
E-mail Address(es):
rglueck@pcti.tec.nj.us
mfoti@pcti.tec.nj.us
Occupational Area: Business Education
CTE Concept(s): Depreciation, Estimated Salvage Value, Estimated Useful Life.
Math Concepts: Slope intercept formula, addition, subtraction, multiplication, division, and iteration.
Lesson Objective:
Calculate monthly and yearly depreciation expenses for machinery and equipment used for normal business
operations.
Supplies Needed:
Projector, worksheets, calculators
THE "7 ELEMENTS"
1. Introduce the CTE lesson.
TEACHER NOTES
(and answer key)
Answers might include the car has been used, the car may be
damaged, etc.
Today we are going to learn to calculate depreciation
expense for major equipment used by businesses during The students will pick various types of expensive equipment that
the course of normal business operations.
when resold will have to be sold at a reduced value due to usage,
age, and remaining useful life.
Why do you believe that a car that the original owner is
trying to sell will not be resold at the original purchase The students will be able to use subtraction, multiplication, and
price?
division to find monthly depreciation and ultimately the total
depreciation per year, and overall accumulated depreciation for the
life of the equipment.
2. Assess students’ math awareness as it relates to the CTE
lesson.
If you bought a watch for $60 and wanted to sell it for $20,
how much did the value go down by?
$60(original cost) - $20(remaining value) = $40 reduction in the
value of the watch.
If you bought the watch for $60 and held it for two years,
and you still want $20 for if after two years, how much
($60 - $20)/2 or $40/2 = $20 (decrease in value each year.
value was lost each year.
3. Work through the math example embedded in the CTE lesson.
Define the terms depreciation, original cost, salvage value, and
estimated useful life.
Depreciation is the loss of value of a piece of equipment due to the
use of the equipment. The original cost is the original purchase price
of the equipment. The salvage value is the estimated value a
You purchased a BMW for $50,000. You expect the car to have a
company expects to receive when they decide to sell the item. The
salvage value of $5,000
estimated useful life is the number of years the piece of equipment is
Step-by-step
expected to be used.
Write the formula for calculating annual depreciation.
Express the formula as (Cost – Salvage Value)/Estimated useful life
Calculate the yearly depreciation.
Verify the remaining salvage value
($50,000 - $5,000)/10 = $4,500 annual depreciation.
Total
depreciation for 10 years on a car purchased on January 1st of the
year current year $4,500 X 10 years = $45,000.
$50,000 (Original Cost) - $45,000 (Accumulated depreciation) =
$5,000 salvage value.
4. Work through related, contextual math-in-CTE examples.
Solutions to worksheet element 4
Worksheet element 4
5. Work through traditional math examples.
Solutions to worksheet element 5.
Worksheet element 5
6. Students demonstrate their understanding.
Worksheet element 6
Solution to worksheet element 6.
7. Formal assessment.
Students should set the problem up as in elements 3, 4, and 6
Students will select an expensive piece of equipment of their own
choosing (must be over $50,000). The students will choose their
own salvage value with an “estimated useful life” of ten years.
NOTES: