Sum Of Years Digits Depreciation: Concept, Formulas & Solved Problem | PMP Exam

Sum of Years Digits Depreciation is one of the Accelerated Depreciation Methods.
During the initial time periods, depreciation is value is high. The depreciation per time period declines with time.
In this lesson, we will cover the following
1. What is Sum of Years Digits method of depreciation?
2. How to calculate Sum of Years Digits depreciation?
3. What is the formula for Sum of Years Depreciation?
4. What is Accelerated Depreciation?
5. Solved Problem on Accelerated Depreciation
#SunnySensei #accounting

[@randyzeroth4098]

That's the first time I see a formula to simplify the depreciation base as opposed to just using the old y1+y2+y3+y4+y5= Depr. Base. Excellent input.

[@sunny.sensei]

I am glad that you found the lesson useful.

[@user-cf9ow9ud1j]

Thank bkoz am really going to pass my exams through your tutorial,,and use this knowledge in future

[@sunny.sensei]

You are most welcome! I am sure you will pass the exam. By the way, what kind of exam are you appearing for?

[@artandcraft4788]

Nice explaination

[@samirkumarpradhan8392]

Which is the right depreciation method for accelerated depreciation is it double decline balance method or sum of years digit? Which is appropriate

[@ALLIN-wj4zg]

Thank you man !!!! You nailed it

[@sunny.sensei]

You are most welcome!

[@shairaramirez4003]

Thanks for this!

[@sunny.sensei]

I am glad you liked this lesson 🙏

[@ChirpyProductionz]

what if the problem is asking for the total depreciation DURING its fourth year of operation?

[@sunny.sensei]

For the problem in this lesson, the depreciation in the fourth year will be 2/15 x $1500 = $200
Please have another look at the lesson.

[@kshitijagrawal8911]

But why we calculate depreciation base value??

[@roferdmanaois-xh3kv]

5 divide 2 multiply by 1 plus 5 I don't understand it

[@kasiruyamagata7716]

Sir aap Indian hoke dollars use kiu kiya
Inr kiu nehi
😒😒😒

[@sunny.sensei]

Koi specific reason nahi hai. I hope you liked the lesson.
By the way, Yamagata is a Japanese name. Indian hote hue Japanese? 😊🙏