Methods of Calculating Depreciation
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An item of equipment acquired on Jan 1 at a cost of $100,000 has an estimated life of 10 years. Assuming that the equipment will have a salvage value of $10,000, determine the depreciation for each of the first three years by the:
a) Straight line method
b) Declining balance method
c) Sum of the years 'digits method
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Solution Summary
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.
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P.S. The Sum of Years' Digits method is calculated by first ...
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- BA, Ain Shams University, Cairo Egypt
- MBA, California State University, Sacramento
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