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  • Activity 3 - Sum-Of-Years Method

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    GUILLERMO MARULANDA
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    This document provides information to calculate depreciation of an equipment asset using the sum-of-years digits method. It lists the cost of the asset as $14,000, the residual value as $3,000, and useful life as 7 years. It then shows the depreciation amount, accumulated depreciation, and book value for each year over the 7 year useful life.

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    Activity 3 - Sum-of-years method

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    This document provides information to calculate depreciation of an equipment asset using the sum-of-years digits method. It lists the cost of the asset as $14,000, the residual value as $3,000, and useful life as 7 years. It then shows the depreciation amount, accumulated depreciation, and book value for each year over the 7 year useful life.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    13 views3 pages

    Activity 3 - Sum-Of-Years Method

    Uploaded by

    GUILLERMO MARULANDA
    This document provides information to calculate depreciation of an equipment asset using the sum-of-years digits method. It lists the cost of the asset as $14,000, the residual value as $3,000, and useful life as 7 years. It then shows the depreciation amount, accumulated depreciation, and book value for each year over the 7 year useful life.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    Fixed asset Equipment

    Cost of acquisition $ 14,000 Numberator


    Residual value $ 3,000 Denominator
    Useful life (years) 7

    DEPRECIATION TABLE BY TH

    YEAR COST OF ASSET SDA FRACTION


    0 $ 14,000
    1 0.25
    2 0.21
    3 0.18
    4 0.14
    5 0.11
    6 0.07
    7 0.04
    Year 1 Year 2 Year 3
    7 6 5
    28

    DEPRECIATION TABLE BY THE SUM-OF-YEARS METHOD

    DEPRECIABLE COST DEPRECIATION AMOUNT ACCUMULATED DEPRECIATION

    $ 11,000.00 $ 2,750.00 $ 2,750.00


    $ 11,000.00 $ 2,357.14 $ 5,107.14
    $ 11,000.00 $ 1,964.29 $ 7,071.43
    $ 11,000.00 $ 1,571.43 $ 8,642.86
    $ 11,000.00 $ 1,178.57 $ 9,821.43
    $ 11,000.00 $ 785.71 $ 10,607.14
    $ 11,000.00 $ 392.86 $ 11,000.00
    Year 4 Year 5 Year 6 Year 7
    4 3 2 1
    28

    BOOK VALUE OF ASSETS


    $ 14,000.00
    $ 11,250.00
    $ 8,892.86
    $ 6,928.57
    $ 5,357.14
    $ 4,178.57
    $ 3,392.86
    $ 3,000.00

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