A machine with a four-year estimated useful life and an estimated 15 percent salvage value was acquired on January 1,2010.On December 31,2012,the accumulated depreciation using the sum-of-year's digits method would be

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Quizplus · Accepted Answer

The sum-of-year's digits method calculates depreciation by multiplying the depreciable base (original cost less salvage value) by a fraction. For a four-year life, the sum of the years is 10 (4+3+2+1). By the end of 2012, three years have passed, so the fraction is 9/10 (4/10 for 2010, 3/10 for 2011, and 2/10 for 2012).

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