Historical Depreciation Methods 345Thus,dl= 5 - 1 + 1(900 _ 70) = 277
155-2+1
d2= (900 - 70) = 221
15d3= 5 - 3 + 1 (900 _ 70) = 166
. 15
5-4+1
d4= 15 (900-70) = 1115-5+1
ds=. _ (900-70)= 55
These data are plotted in Figure 11-3.
FIGURE 11-3 Sum~of-years' -digits
depreciation. $900 .BSOYD Depreciation
Charges277= = :=
- ~.,..,-""--- --- ~'.-- ..,.~ .--~ -
.
I(^1) t
I
J
I I I I SI
1 234 5
Time, DepreciableLife =N(years)
Depreciation Sum of Depreciation Book Value
Year, for Yeart, Charges Up to Yeart, at End of Yeart,
t t
t dt "Ldj BVt=B-"Ldj
j=l j=l(^1) $277 $277 900 - 277 - 623
2 221 498 900 - 498= 402
3 166 664 900 - 664 = 236
4 111 775 900 - 775= 125
5 55 830 900 - 830= 70 =S
623
0,)::I
«i
>
0 402
j:Q^0
236
L125
700