MB-310 Manage Fixed Assets Practice Question
Your company uses 'Bonus depreciation' for tax purposes. Which setup allows for an additional depreciation amount in the first year of an asset's life?
⚠ Common exam trap
Candidates frequently confuse bonus depreciation with standard depreciation profiles or depreciation conventions, missing the dedicated bonus depreciation feature designed for accelerated tax deductions.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
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Bonus depreciation settings.
Bonus depreciation is configured in the 'Bonus depreciation' setup within the Fixed Asset book. This allows for an accelerated deduction in the first year, which is commonly used to incentivize capital investment. By defining a bonus depreciation percentage or amount, the system automatically calculates this extra expense during the first depreciation run, allowing companies to optimize their tax liabilities in compliance with local tax legislation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Depreciation profile.
Why it's wrong here
The depreciation profile controls the primary depreciation method (e.g., Straight Line). While it handles the standard annual depreciation, it is not the mechanism for applying additional bonus depreciation. Bonus depreciation is a separate calculation layer applied specifically at the asset book level.
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Fixed asset group.
Why it's wrong here
Fixed asset groups define default behaviors, but they do not contain the specific logic or percentage settings for bonus depreciation. Bonus depreciation is an asset-specific or book-specific tax benefit, which is better managed in the individual asset book settings rather than the group-level configuration.
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Bonus depreciation settings.
Why this is correct
Bonus depreciation settings are the designated feature for applying additional, one-time depreciation amounts in the first year. This feature is integrated into the asset book, allowing for the precise application of tax-advantageous depreciation rules beyond the standard methods used for financial reporting.
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Depreciation convention.
Why it's wrong here
Depreciation conventions determine the timing of depreciation (e.g., start date), not the total amount of depreciation to be taken. They do not have the capability to add a bonus amount on top of the calculated depreciation; that is strictly the role of bonus depreciation settings.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Microsoft exam blueprint
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