u Fixed Percentage Method

Fixed percentage method can be used to calculate

depreciation for a given period, or to calculate the

depreciation rate.

I%

YR1

FP

1

 = PV   

100

12 I%

FP

j

 = (RDV

j 1 

+ FV )    100

FP

n+1

 = RDV

n 

   (YR1G12)  

RDV

1

 = PV   FV   FP

1

RDV

j

 = RDV

j 1 

  FP

j

RDV

n+1

 = 0    (YR1G12)  

FP 

j

: depreciation charge for the 

 j

th year

RDV

j

: remaining depreciable value at the end of 

 j

th

year

I

 %

: depreciation ratio

u Sum of the Year's Digits Method

The sum of the year's digits method calculates deprecia 

tion for a given period.

n (n

+1)

Z =

2

YR1

n  = n    12

(Intg (n  ) +1) (Intg (n  )+2   Frac(n  ))

Z  =

2

n

YR1

SYD

1

 =

(PV

Z

12

  FV )

n   j+2

SYD

j

 = (

)(PV

Z 

  FV

  SYD

1

)

( jG1)

n   (n

+1)+2

SYD

n+1

 = (

)(PV

Z 

  FV

  SYD

1

)  

12 YR1 (YR1G12)

12

RDV

1

 = PV

  FV

  SYD

1

RDV

j

 = RDV

j  1  

  SYD

j

SYD 

j

: depreciation charge for the 

 j

th year

RDV

j

: remaining depreciable value at the end of 

 j

th

year

E 70