Sum of the Years Digits

Related BrainMass Solutions

• Methods of Calculating Depreciation

  An Excel spreadsheet showing the straight line, declining balance and sum of the years' digits methods of determining an item of equipment's depreciation for its first 3 years.

• Calculating Depreciation

  Sum of the years' digits In sum of year digits the sum of the digits is 5+4+3+2+1=15. Depreciation in year 2 is 4/15. Depreciation in year 2 = (80,000-10,000) X 4/15 = 18,666.67. 3.

• arithmetic sequence for depreciation

  In straight-line depreciation, equal portions of $2800 are deducted each year over the 4 years. The sum-of-the years'- digits method calculates depreciation differently.

• What is the book value net of depreciation for the Carson Company?

  Till Dec 31,2007 2 years would have passed and so the accumulated depreciation will be for 2 years. In sum of year digits we add the digits of the years.

• ABC Company Manufacturing and Equipment

  Sum-of-the-years'-digits.

• Depreciation methods for introductory financial accounting

  If depreciation in the third year amounted to $1,500, which depreciation method was used? o Straight-line. o Double-declining-balance. o Units of production. o Sum-of-the-years digits. o Sum-of-the years digits.

• Depreciation for Lockhard Company BE 11-2 11-3 11-4 11-8

  (a) Compute 2010 depreciation expense using the sum-of-the-years-digits method. (b) Compute 2010 depreciation expense using the sum-of-the-years-digits method assuming the machinery was purchased on April 1, 2010.

• Annual Depreciation and Appropriate Depreciation Methods

  Sum-of-the-years'-digits method: In this method we first calculate the sum of year digits. The sum of year digits is 10+9+8+7+6+5+4+3+2+1=55 Depreciation in year 1 is 10/55, in year 2 is 9/55, in year 3 is 8/55 and so on.

• Tillman Company owns a machine that was bought on January 2,

  The machine was estimated to have a useful life of five years and a salvage value of $24,000. Tillman uses the sum-of-the-years'-digits method of depreciation.