Sum of Years Digit Method of Depreciation Sample Clauses

Sum of Years Digit Method of Depreciation. Example: Cost of Asset = 100 Life = 5 Years Salvage Value = 10 Calculate Depreciation. Solution: Amount to be depreciated = 100 - 10  90 Life = 5 years Sum =1+2+3+4+5=15 Years Depreciation 1 90 × 5 / 15 = 30 2 90 × 4 / 15 = 24 3 90 × 3 / 15 = 18 4 90 × 2 / 15 = 12 5 90 × 1 / 15 = 6 LOS 5: Treatment of Salvage Value Adjusted for tax – (WDV Depreciation)
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