sum-of-the-years digits depreciation method
sum-of-the-years
digits depreciation method Finance Definition
An accelerated depreciation
schedule that totals up the digits for the years of the useful life. An asset
with four years of life would be added up to produce 10 (4 + 3 + 2 + 1 = 10). A
depreciation schedule follows for a $10,000 asset, assuming no resale value.
Per year Cumulative
Year 1 $ 4,000 $ 4,000
Year 2 $ 3,000 $ 7,000
Year 3 $ 2,000 $ 9,000
Year 4 $ 1,000 $10,000
$10,000
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