A machine with a four-year estimated useful life and an estimated 15 percent salvage value was acquired on January 1, 2019. On December 31, 2021, the accumulated depreciation using the sum-of-year's digits method would be

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Quizplus · Accepted Answer

The sum-of-the-years'-digits method accelerates depreciation, with the fraction for each year being the remaining life divided by the sum of the years' digits. Over four years, the sum is 1+2+3+4=10. For the first three years, the fractions are 4/10, 3/10, and 2/10, totaling 9/10 of the depreciable base (original cost less salvage value).

A Machine with a Four-Year Estimated Useful Life and an Estimated