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Straight Line: Depreciation Methods Year # 1 2 3 4 5 6

The document compares four depreciation methods - straight line, double declining balance (DDB), units of production, and sum-of-years digits (SYD). It shows the opening book value, depreciation expense, and ending book value for 6 years for each method using an initial book value of $25,000. Straight line depreciates the same amount each year while the other methods depreciate more in earlier years and less in later years.

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113 views6 pages

Straight Line: Depreciation Methods Year # 1 2 3 4 5 6

The document compares four depreciation methods - straight line, double declining balance (DDB), units of production, and sum-of-years digits (SYD). It shows the opening book value, depreciation expense, and ending book value for 6 years for each method using an initial book value of $25,000. Straight line depreciates the same amount each year while the other methods depreciate more in earlier years and less in later years.

Uploaded by

GolamMostafa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Depreciation Methods

Year # 1 2 3 4 5 6

Straight Line
Opening Book Value 25,000 21,875 18,750 15,625 12,500 9,375
Depreciation 8 3,125 3,125 3,125 3,125 3,125 3,125
Ending Book Value 25,000 21,875 18,750 15,625 12,500 9,375 6,250

DDB
Opening Book Value 25,000 18,750 14,063 10,547 7,910 5,933
Depreciation 25% 6,250 4,688 3,516 2,637 1,978 1,483
Ending Book Value 25,000 18,750 14,063 10,547 7,910 5,933 4,449

Units
Production (Units) 4 7 4 23 32 12

Opening Book Value 25,000 24,000 22,250 21,250 15,500 7,500


Depreciation 1,000 1,750 1,000 5,750 8,000 3,000
Ending Book Value 25,000 24,000 22,250 21,250 15,500 7,500 4,500

SYD
Remaining Life 8 7 6 5 4 3

Opening Book Value 25000 19,444 14,583 10,417 6,944 4,167


Depreciation 5,556 4,861 4,167 3,472 2,778 2,083
Ending Book Value 25,000 19,444 14,583 10,417 6,944 4,167 2,083

25,000 (3,125) (3,125) (3,125) (3,125) (3,125) (3,125)


25,000 (6,250) (4,688) (3,516) (2,637) (1,978) (1,483)
25,000 (1,000) (1,750) (1,000) (5,750) (8,000) (3,000)
25,000 (5,556) (4,861) (4,167) (3,472) (2,778) (2,083)
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7 8

Book Value
6,250 3,125 Straight Line DDB Units SYD
3,125 3,125
25,000
3,125 -

20,000
4,449 3,337
1,112 834 15,000
3,337 2,503
10,000

6 12
5,000

4,500 3,000
-
1,500 3,000 1 2 3 4 5 6 7
3,000 -
Year

2 1
Depreciation Expense
2,083 694
1,389 694 Straight Line DDB Units SYD
694 - 8,000

7,000

6,000

5,000

4,000

3,000
(3,125) (3,125)
2,000
(1,112) (834)
(1,500) (3,000) 1,000
(1,389) (694) -
1 2 3 4 5 6 7

Year
-
1 2 3 4 5 6 7

Year

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e
Units SYD

5 6 7 8

pense
Units SYD

5 6 7 8
5 6 7 8

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