Fractional year amortization can be determined in two different ways for declining balance methods, but only one way for sum of years' digits.

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For declining balance methods, fractional year amortization can be calculated either by applying the full year's depreciation rate to the partial year's cost basis or by prorating the annual depreciation amount based on the portion of the year. However, for the sum of the years' digits method, there's typically only one standard approach to handling fractional years, which involves adjusting the fraction of the year into the calculation directly without the flexibility seen in declining balance methods.

Fractional Year Amortization Can Be Determined in Two Different Ways