Syd: Sum-of-the-years'-digits Depreciation

Use Syd to compute the sum-of-the-years'-digits depreciation. This method of depreciation accelerates the rate of depreciation so that more depreciation expense occurs in earlier periods than in later ones. The depreciable cost is the actual cost minus salvage value. The useful life is the number of periods, typically years, over which an asset is depreciated. Store the following information in the memory registers:

• Register 0: Cost of the asset

• Register 1: Salvage value of the asset

• Register 2: Useful life of the asset

• Register 3: Period for which depreciation is computed

Syd Example:

You have just purchased an office machine for $8,000. The useful life of this machine is six years, and the salvage value after eight years will be $900. You want to compute the depreciation expense for the fourth year, using the sum-of-the-years'-digits method.

Memory register usage:

Register 0: 8000 (cost of the asset) Register 1: 900 (salvage value of the asset) Register 2: 6 (useful life of the asset) Register 3: 4 (period for which depreciation is computed)

Clicking SELECT on Syd returns 1014.29, the dollar depreciation allowance for the fourth year.