# 20010101 2 9 2 depreciation u sum of the years digits

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Unformatted text preview: – FV – FP1 FPj : depreciation charge for the jth year RDVj : remaining depreciable value at the end of jth year I% : depreciation rate RDVj = RDVj–1 – FPj RDVn+1 = 0 ({Y–1}G12) Depreciation for an item acquired part way through a year can be calculated by month. 20010101 2-9-2 Depreciation u Sum-of-the-Year's Digits Method The sum-of-the-year's-digits method calculates depreciation for a given period. n (n +1) 2 {Y–1} n' = n – 12 (n' integer part +1)(n' integer part + 2*n' fraction part ) Z' = 2 n {Y–1} × (PV – FV ) SYD1 = Z 12 n'– j+2 )(PV – FV – SYD1) SYDj = ( ( jG1) Z' 12–{Y–1} n'– (n +1)+2 SYDn+1 = ( )(PV – FV – SYD1) × ({Y–1}G12) Z' 12 Z= RDV1 = PV – FV – SYD1 SYDj : depreciation charge for the j th year RDVj : remaining depreciable value at the end of j th year RDVj = RDVj –1 – SYDj Depreciation for an item acquired part way through a year can be calculated by month. u Declining Balance Method The declining balance method calculates depreciation for a given period. DB1 = PV × I% Y–1 × 100n 12 DB...
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