SUM-OF-YEARS'-DIGITS DEPRECIATION SCHEDULE

Another method of accelerated depreciation is that of the sum of the individual years, which consists in multiplying the remaining book value by the ratio between the number of remaining years and the sum of the years of life. If the life of an asset is 5 years, the sum of the years of life will be: 5 + 4 + 3 + 2 + 1 = 15 The data to be provided to your computer are, the current book value, the salvage value and the life of the asset itself.