Question

original value 1300000, salvage value 40000 useful life in 6 years. depreciation for the first year under sum of years digit methods will be​

Answer 1

Explanation:

Sum of years = 1+2+3+4+5+6 = 21

Original Cost = 1,30,000

Salvage Value = 4,000

                          = 1,26,000

Depreciation = 1,26,000*3/21

                       = 18,000.