Level1: Sum of year's digits method method

umbaow

 Walsh furniture has a machine with a 7 year useful life for 250000. At the end of  its life, it will have an estimated salvage value of $ 15000. Using the sum of the year digits method, what is the depreciation expense in year 1, 2 and 3?



Can Anybody give me a explicit solution, thanks.

essencnz

n=1+2+3+4+5+6+7

jackchou

QUOTE:

以下是引用umbaow在2009-6-3 13:29:00的发言：
 Walsh furniture has a machine with a 7 year useful life for 250000. At the end of  its life, it will have an estimated salvage value of $ 15000. Using the sum of the year digits method, what is the depreciation expense in year 1, 2 and 3?



Can Anybody give me a explicit solution, thanks.

N=1+2+3=6

depreciation of year X=(cost - accumulated depreciation)(n-x+1)/n

我也忘了，今天回去看看书，不知道这个解答对不对，好沮丧啊，自己也忘了