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Unformatted text preview: e faster Declining balance DB Double declining balance DDB Sum of years digits SYD Declining balance Depreciate the same fraction, d each year B = cost (basis) t = years of service BVt = book value at the end of year t Dt = depreciation taken in year t 2 ChBE 4505/4525 Schork L12 d is allowed to vary from 1/n to 2/n (double declining balance) Salvage value not used Value never goes to zero Value never allowed to go below the salvage value Switch from DB to straight line partway thru to allow BV = S at end OR, calculate value of d that makes BV = S at t=n 3 ChBE 4505/4525 Schork L12 Sum of Years Digits 4 ChBE 4505/4525 Schork L12 Accelerated Cost Recovery System (ACRS) Modified Accelerated Cost Recovery Systems (MACRS) End of L12 5...
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- Spring '14