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Sum of the Years Digits Method - Depreciation    
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Sum of the Years Digits Method - Depreciation

It is an accelerated depreciation method.The asset will lose the majority of its value in the first few years of its useful time.

Sum of the Years Digits method is based on the purchase price,salvage value and year of usefulness.

Year Q=(P-V)((Y+1-Q)/Sum of years)



 
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By - Rekha, On - 2010-07-29
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