Sum-of-the-Years'-Digits Depreciation (Book)

A sum-of-the-years'-digits depreciation schedule, the accelerated book method.

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The accelerated time-based method the depreciation set (straight-line, declining-balance, units-of-production) was missing. SYD = n(n+1)/2; year k depreciation = (cost - salvage) x (n - k + 1) / SYD. A $50,000 machine, $5,000 salvage, 5-year life: SYD 15, so year 1 is 5/15 x $45,000 = $15,000, falling by $3,000 each year to $3,000 in year 5. Unlike declining-balance it subtracts salvage first, so the schedule lands exactly on salvage in the final year with no plug. Reports the year's depreciation, accumulated depreciation, and year-end book value. A GAAP/book method (ASC 360), not tax MACRS. A bookkeeping aid; the accounting policy and tax rules govern.

SYD = n(n+1)/2; year k depreciation = (cost - salvage) * (n - k + 1) / SYD. Accumulated is the running sum; book value = cost - accumulated.

GAAP book depreciation - ASC 360 (Property, Plant, and Equipment), by name; sum-of-the-years'-digits accelerated method. Distinct from the macrs-depreciation tile (IRS Pub 946 tax method).

Accounting information, not advice; a CPA and current GAAP govern.

Estimate. AHJ and licensed professional govern.

Field names used by the API: cost, salvage, life_yr, year, year_depreciation, book_value

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