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# Double decline method of depreciation example

Calculate the annual depreciation rate (i.e., 100% / 5 years = 20%). Multiply the beginning period book value by twice the regular annual rate (\$1,200,000 x 40% = \$480,000). Deduct the annual depreciation expense from the beginning period value to calculate the ending period value. Repeat the above steps until the salvage value is reached Typically, accountants switch from double declining to straight line in the year when the straight line method would depreciate more than double declining. For instance, in the fourth year of our example, you'd depreciate \$2,592 using the double declining method, or \$3,240 using straight line. That's when you'd make the switch A double-declining balance method is a form of an accelerated depreciation method in which the asset value is depreciated at twice the rate it is done in the straight-line method. Since the depreciation is done at a faster rate (twice to be precise) of the straight-line method, it is called accelerated depreciation The double declining balance (DDB) method is a type of declining balance method that instead uses double the normal depreciation rate. Depreciation rates used in the declining balance method could.. The double declining balance depreciation rate is twice what straight line depreciation is. For example, if you depreciate your machine using straight line depreciation, your depreciation would..

For example, if an asset has a useful life of 10 years (i.e., Straight-line rate of 10%), the depreciation rate of 20% would be charged on its carrying value. Unlike the straight-line method, the double-declining method depreciates a higher portion of the asset's cost in the early years and reduces the amount of expense charged in later years Double declining method or reducing balance method of depreciation is most appropriate for assets like plant and machinery. In this era of technological advancement, assets like plant and machinery or equipment lose its value rapidly due to introduction of better devices every now and then Example 1: Double-Declining Depreciation in First Period An asset costing \$20,000 has estimated useful life of 5 years and salvage value of \$4,500. Calculate the depreciation for the first year of its life using double declining balance method Double declining depreciation method is an accelerated depreciation method where the depreciation expense decreases with the age of the asset. Depreciation charge under the double declining depreciation method is calculated by applying the higher depreciation rate to the asset book value at the start of the period

Double Declining Balance Depreciation Example An asset for a business cost \$1,750,000, will have a life of 10 years and the salvage value at the end of 10 years will be \$10,000 Let's calculate the depreciation using the Double Declining Balance method. From year 1 to 3, ABC Limited has recognized accumulated depreciation of \$9800.Since the Machinery is having a residual value of \$2500, depreciation expense is limited to \$10000 (\$12500-\$2500) To calculate depreciation under the double declining method, multiply the asset book value at the beginning of the fiscal year by a multiple of the straight-line rate of depreciation. The double declining balance formula is: Double-declining balance (ceases when the book value = the estimated salvage value

The double declining balance depreciation method shifts a company's tax liability to later years when the bulk of the depreciation has been written off. The company will have less depreciation expense, resulting in a higher net income, and higher taxes paid Note: Since this is a double-declining method, we multiply the rate of depreciation by 2. 3. Multiply the rate of depreciation by the beginning book value to determine the expense for that year. For example, \$25,000 x 25% = \$6,250 depreciation expense ������Depreciation Cheat Sheet → https://accountingstuff.com/shopIn this video you'll learn how to use the Double Declining Balance Depreciation Method in Accoun.. Sometimes called the reducing balance method, the double declining depreciation method offers a way to account for an asset's reduction in value over time. While methods like straight-line depreciation use a consistent rate of depreciation for each year of an asset's lifespan, accelerated depreciation methods like DBB show a steep drop in. DDB stands for double declining balance, a magnified form of accelerated depreciation method. The first period depreciation expense under the double-declining balance method equals the cost divided by life multiplied by the magnification [factor]. Depreciation expense in subsequent periods equals the opening carrying value of the asset divided.

The double-declining-balance method requires the use of a depreciation rate that doubles the rate of a straight-line depreciation. For example, the straight-line depreciation rate for a 10-year asset would be 10 percent for each year, or one-tenth of the 100 percent full depreciation rate Under the straight-line method, the 10-year life means the asset's annual depreciation will be 10% of the asset's cost. Under the double declining balance method the 10% straight line rate is doubled to 20%. However, the 20% is multiplied times the fixture's book value at the beginning of the year instead of the fixture's original cost Double declining balance method: The double declining balance method is simply a declining balance method in which double (200%) of the straight line depreciation rate is used. Also discussed in the first paragraph of the article

### Decline Of on eBay - Fantastic Prices On Decline O

Example. Johnson's cars bought equipment for \$380,500. The useful life is estimated to be 4 years and a salvage value - \$85,000. Let's calculate depreciation for the 2nd year using the double declining balance method. First, we need to calculate the depreciation expense for the first year This video shows how to calculate Double-Declining Balance depreciation expense both for a full year and partial year. Example includes adjusting entry, ass.. The double-declining depreciation method calculates the expense twice the book value of the asset every year. The formula to calculate the double-declining method is as follows: Depreciation = 2 * Straight-line depreciation percent * The book value at the beginning of the accounting year Depreciation Problems and Solutions is set of solved questions for Straight Line Method, Units of Output Method and other methods... Visit the post for more. Double Declining Balance Method; Sum of Year Digit Method . Solution (a): Straight Line Method . Solution (b): Units of Output Method

Double-Declining Balance Depreciation Example. Company XYZ buys a tractor for \$25,000 and expects it to last four years, at which point it would be salvaged for \$5,000. The book value in this situation would be \$25,000. The straight line depreciation percent would be 25% (1 / 4 years), meaning the double-declining depreciation rate would be 50% Calculator Use. Use this calculator to calculate an accelerated depreciation of an asset for a specified period. A depreciation factor of 200% of straight line depreciation, or 2, is most commonly called the Double Declining Balance Method.Use this calculator, for example, for depreciation rates entered as 1.5 for 150%, 1.75 for 175%, 2 for 200%, 3 for 300%, etc For example, if an asset has a service life of five years, the percentage is calculated as 40 percent (200% ÷ 5). This method is also known as double declining balance. To set up 200% reducing balance depreciation, you must also select options in the Depreciation year field and the Period frequency field on the Depreciation profiles page Definition: The double declining balance method, or DDB, is an accelerated system to record depreciation over an assets' useful life by multiplying an asset's beginning book value by a depreciation rate.It's called a declining method because the amount of depreciation expense recorded each year decreases until the asset is fully depreciated Example. Fister and Bullhead, a law firm, purchases \$12,000 worth of office furniture. They will depreciate the entire cost over the next seven years. Prepare a double declining balance depreciation schedule, switching to straight line at the most opportune time. Solution. The depreciation rate for the declining balance portion of the schedule is

Double-declining depreciation, or accelerated depreciation, is a depreciation method whereby more of an asset's cost is depreciated (written-off) in the early years. This method is thought to better reflect the asset's true market value as it ages In certain cases businesses do use double declining balance method of depreciation to attribute cost of property, plant and equipment to expenses.. When this method is applied, in the first years of depreciation bigger part of the cost value for the asset is attributed to expenses, gradually declining over the useful life of the asset.. Such method is supported in case the asset actually. Double Declining Balance - This method uses the depreciation rate to double the straight line depreciation rate. Let us give you an example of that. If the straight line depreciation rate for a 5years asset is 10% each year, using the double declining balance method, the depreciation rate is doubled to 20%

### Double Declining Balance Depreciation - Examples, Guid

The double declining balance depreciation (DDB) method, also known as the reducing balance method, is one of two common methods a business uses to account for the expense of a long-lived asset. Similarly, compared to the standard declining balance method, the double declining method depreciates assets twice as quickly Under the double-declining balance method, the book value of the trailer after three years would be \$51,200 and the gain on a sale at \$80,000 would be \$28,800, recorded on the income statement. So, for example, the MACRS depreciation schedule for an asset with a 3 -year recovery period uses double-declining-balance-switching-to-straight-line depreciation. From our last lecture we know that, for the double-declining-balance method, the depreciation rate is 100% d 2 66.67% 2. Depreciation by Declining Balance Method. Declining Balance Method is sometimes called the Constant-Percentage Method or the Matheson formula. The assumption in this depreciation method is that the annual cost of depreciation is the fixed percentage (1 - K) of the Book Value (BV) at the beginning of the year Definition and Explanation: Declining balance or reducing balance depreciation method considers the value of assets are largely use or highly contribute to operation at the beginning and then subsequently decline.. That means depreciation expenses that should be charged to certain types of assets are high at first and then low subsequently.. This is the main principle of this depreciation

The double or 200% means two times straight-line rate of depreciation. For instance, if an asset's estimated useful life is 10 years, the straight-line rate of depreciation is 10% (100% divided by 10 years) per year. Therefore, the double or 200% will mean a depreciation rate of 20% per year Double Declining balance method. Now we can easily understand that Double Declining balance method of depreciation is such declining balance method in which the acceleration factor is 2 or 200%. Double declining balance method and IASs. According to International Accounting Standard (IAS) 16 para 60 The two-hundred percent (200%) declining balance method of depreciation, or double declining balance method of depreciation, is an example of accelerated depreciation. Basically, accelerated depreciation is exactly what it sounds like—a greater depreciation of an asset off the starting block than the straight line method

### Double Declining Balance: A Simple Depreciation Guide

1. Example of the double declining depreciation method: Let us assume that ABC Limited bought a machine for \$100,000 in 2001. The useful life of the machine is estimated to be 10 year with its salvage value (the resale value of the asset once its useful life is over) of \$10,000
2. Portable and easy to use, Double Declining Balance Method study sets help you review the information and examples you need to succeed, in the time you have available. Use your time efficiently and maximize your retention of key facts and definitions with study sets created by other students studying Double Declining Balance Method
3. Test your knowledge of double entry bookkeeping with our declining balance method of depreciation quiz. Declining balance depreciation is one method of calculating the depreciation expense on long term assets such as property, plant, and equipment

### Double Declining Balance Method of Deprecitiation (Formula

• Reducing balance method causes reported profits of a company to decline by a higher depreciation charge in the early years of an assets life. It is a more suitable method for depreciating assets that generate higher economic benefits later in their useful life
• g the business adopts the straight line method of depreciation and the asset has no salvage value, calculate the half year depreciation assu
• The double-declining balance method computes depreciation at an accelerated rate - depreciation is highest in the first period and decreases in each successive period. To calculate depreciation, the DDB function uses the following formula: = MIN((cost - pd) * (factor / life), (cost - salvage - pd)

### Double Declining Balance (DDB) Depreciation Method Definitio

What is double declining balance formula and and also provide example. Double declining balance method is another type of accelerated depreciation method followed generally in USA. The depreciation expense is computed by multiplying the asset cost less accumulated depreciation by twice the straight line rate expressed in percentage Change factor if you do not want to use the double-declining balance method. Use the VDB function if you want to switch to the straight-line depreciation method when depreciation is greater than the declining balance calculation. Example. Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet First, Divide 100% by the number of years in the asset's useful life, this is your straight-line depreciation rate. Then, multiply that number by 2 and that is your Double-Declining Depreciation Rate. In this method, depreciation continues until the asset value declines to its salvage value Straight-Line Depreciation Methods and Profitability . Despite no difference other than the accounting methodology, in, say, year nine, a company using the straight-line depreciation method is going to appear to be far less profitable than one using the sum of the years' digit or double declining balance depreciation method while, at the same time, having a much higher net worth resulting in a.

The method described above is called straight-line depreciation, in which the amount of the deduction for depreciation is the same for each year of the life of the asset. Double Declining Balance. This method includes an accelerator, so the asset depreciates more at the beginning of its useful life (used with cars, for example, as a new car. The annual depreciation is calculated by multiplying the net book value at the beginning of the year by the double-declining depreciation rate. The net book value to which the rate is applied will decline each year Depreciation = (Asset Cost - Residual Value) / Life-Time Production * Units Produced. The following additional steps can be used to derive the formula for depreciation under the double-declining balance method: Step 8: Figure out the asset's accumulated depreciation at the end of the last reporting period Because twice the straight-line rate is generally used, this method is often referred to as double-declining balance depreciation. For example, the equipment has a five-year life. This results in an annual straight-line percentage rate of 20% (1 / 5 = 20%). The double-declining-balance rate is 40% (2 x 20%)

### The Double Declining Depreciation Method: A Beginner's

The double declining method is an alternative calculation to the straight-line method, which tracks the same amount of loss each year. With the straight-line method, you can set a dollar amount for item depreciation and subtract that value from the asset annually The Double-Declining Balance Method As one of several accelerated depreciation methods, double-declining balance (DDB) results in relatively large amounts of depreciation in early years of asset life and smaller amounts in later years Double declining balance depreciation method also charges the depreciation amount of the fixed assets higher in the early year. Formula of Double Declining Balance Depreciation Example of Double Declining Balance Depreciation. The company ABC bought a computer for \$2,000 in which it expects to use for 4 years. The computer is expected to be.

### Double-Declining Balance Depreciation Method Accountingo�

• The double-declining balance depreciation method is a form of accelerated depreciation that doubles the regular depreciation approach. It is frequently used to depreciate fixed assets more heavily in the early years, which allows the company to defer income taxes to later years. This guide will explain how it works and provide examples
• However, if Company XYZ uses an accelerated depreciation method, it might expense far more of the asset's cost in the first few years and expense less cost in the later years. The most popular accelerated depreciation methods are the Sum of the Years Digits method and the Double Declining Balance (DDB) method. Let's look at the DDB method first
• The declining method multiplies the book value of the asset by the double declining depreciation rate. The depreciation expense is then recorded in the accumulated depreciation account, which reduces the asset book value for the next year. This happens every year of the asset's useful life. Here is a spreadsheet example
• • Declining balance depreciation uses either 150% or 200% of the straight-line rate. Since 200% is twice the straight-line rate, it is called double declining balance (DDB) • The DDB depreciation amount, Dn, in any year is: • It can be shown, in general, for DDB, that • For 150% declining balance depreciation, just replace eac

### How to calculate depreciation expenses using the double

Reason both the straight-line and double-declining-balance depreciation methods are not fully depreciating the asset.In other words,when the salvage value is zero,double-declining-balance depreciation method will never depreciate the asset fully. Moreover income tax paid also will not lower under DDB, method DDB Function Example. In the example below, the DDB function uses the double declining depreciation method to calculate the yearly depreciation of an asset that costs \$10,000 at the start of year 1, and has a salvage value of \$1,000 after 5 years The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. The life and period arguments must be expressed in the same units. For example, if life is given in months, period must also be given in months The double-declining balance (DDB) method is known as an accelerated depreciation method, which writes off more depreciation near the start of an asset's life and less at the end. The DDB method multiplies an asset's decreasing book value by a constant rate that is twice the SL depreciation rate In this example, cost will be \$100,000 and salvage value will be \$10,000 this time. Another variable exclusive to this method is the rate the depreciation will be deducted. This is the double-declining balance rate, or DDB rate. To calculate the DDB rate, use the equation: DDB Rate = (1 / Useful Life) x The 200%, or double-declining depreciation, simply means that the depreciation rate is double the straight-line depreciation rate used for later property classes. GDS using 150% DB: 15-year and 20-year classes use 150% Declining Balance method (GDS) - This depreciation method gives you a higher depreciation rate - 150% more than the. The contractor uses the double-declining balance method of depreciation. A straight-line method for an asset with a service life of five years would depreciate the asset at a rate of 20% per year (100 percent divided by 5 years). A double declining balance method therefore depreciates the asset using a rate of 40% per year Other Depreciation Methods. In addition to straight-line, there are a handful of other (more complicated) methods of depreciation that are also GAAP-approved. For example, the double declining balance method consists of multiplying the remaining net book value by a given percentage every year Example. The following example illustrates the calculation of partial year's depreciation expense under the straight-line, sum-of-the-years'-digits, and double-declining methods using the following information: Under the half-year convention, a half year's depreciation is charged to the year of acquisition. Subsequent year's charges.

Most often, if declining balance method is used, last year's depreciation is the balancing figure to reduce the book value to expected residual value. Consider the following example to understand how declining balance to straight line cross over method is different from straight line and simple declining balance method. Example This graph compares the amount you would claim under each method for the depreciation of an asset that is used only for business. The asset in this example cost \$80,000, was acquired on the first day of the income year and has an effective life of five years. Prime cost (straight line) method. Under the prime cost method (also known as the. Double Declining Balance Method Example 1 1. double declining balance method Cost of asset = \$100,000 Estimated residual value = \$10,000 Estimated useful life of asset = 5 years Depreciation rate = (1/useful life) x 200% = 1/5 x 200% = 20% x 2 = 40% Example 1 Summar a) Diminishing balance method b) Double declining balance method c) Sum-of-the-years'-digits method 4. Interest methods a) Annuity method b) Sinking fund method 5. Other methods a) Revaluation method b) Group or composite method c) Discounted cash flow method d) Replacement method. Some of the well known methods of depreciation accountin^Le.

The methods of depreciation include the straight-line method, units-of-production method, and double-declining balance method. Consider the methods of depreciation and respond to the following: What are the various points or factors you would consider while choosing a method of depreciation for plant and equipment of an electricity company What does double-declining-balance-method-of-depreciation mean? An accelerated depreciation method that assumes that the most useful life of an asset is its early years. Thus, it takes.. Examples of accelerated depreciation methods are the double declining balance and sum-of-the-years digits methods. The primary method for steady depreciation is the straight-line method. The units of production method is also available if you want to depreciate an asset based on its actual usage level, as is commonly done with airplane engines. The double depreciation rate remains constant over the depreciation process. The same rate is applied to the reducing book value of the asset each depreciation period. Example of the Double Declining Depreciation Method. For example, a business buys a machinery with \$ 10,000 and the machinery is expected to last for 10 years double declining-balance depreciation uses the same rate of depreciation each year. obsolete, or get used up. Making a Depreciation Schedule Make a double declining-balance depreciation schedule for the ofﬁ ce equipment in Example 1. SOLUTION Annual rate of depreciation = 2 — 5 = 40% A B C Year 1 \$25,000 \$10,000 2 \$15,000 \$6,000 3 \$9,000 \$3,60

Calculate the depreciation for the first two years using the double declining balance method. A lifetime of five years gives a basic depreciation of 20% per year (100% divided by 5). Doubling this gives 40% per year for the double declining balance method. For year one, the depreciation is \$90,000 * 0.4 = \$36,000 With this method, a fixed percentage of the straight-line rate (i.e., 200% or double) is multiplied times the remaining book value of an asset (as of the beginning of a particular year) to determine depreciation for a particular year. As time passes, book value and annual depreciation decrease Double-Declining Balance Depreciation. Using the double-declining balance method allows you to take larger depreciation expenses in the earlier years of an asset's useful life. The double-declining refers to the fact that this depreciation method uses a rate that is twice as much as the rate used under the straight-line method, and that. Depreciation methods vary for tax and accounting purpose as well as between asset types within the same business. There are mainly four standard methods of depreciation: Straight-line; Double declining balance; Units of production; Sum of the years digits; 1. Straight line depreciation method: It is the simplest method of depreciation Double-Declining Balance This method is used when the asset depreciates more quickly in the earlier years, like your car. It has a 2x factor to accelerate depreciation. In straight-line, the factor is 1

For the double-declining balance method, the following formula is used to calculate each year's depreciation amount: 2 x (Straight-line depreciation rate) x (Remaining book value First compute the straight-line depreciation. Then figure out the total percentage of the asset that is depreciated the first year and double it. So in this case you can look at the math above and see that Straight line depreciation applied \$180 the first year or 20%. Under this method, double that figure the first year: 40% or \$360 Double-Declining Balance: An acceleration method used when the asset depreciates more quickly in the earlier years. It has a 2x factor. Sum-of-Year Digits: This method applies a percentage to determine the depreciation value. Like double-declining, this is an accelerated method. Units of Production: A method of depreciation based on asset usage. Explain what the double-declining balance method of depreciation is using an example. Depreciation Only fixed assets are eligible for depreciation and not the current assets or intangible assets  ### Declining Balance Depreciation Formula & Exampl

Using the double declining balance depreciation method, determine: 178 Chapter 12 Depreciation a) The depreciation in the first year. b) The book value after five years. c) The book value after five years if the salvage was only \$50. Solution a) Rate = = 40% = .4 1,000(.4) = \$400. The double declining balance (DDB) depreciation method, also known as the method of balance, is one of two traditional methods that a company uses to account for the value of a long-lived asset. It is also used to more aggressively depreciate fixed assets in the early years, which helps the corporation to postpone taxes on revenue to later years. In other words, it is an accelerated method of. Of the depreciation methods described above, the accelerated methods of depreciation are declining balance and double-declining balance. You can manually adjust the depreciation expense taken to equal the depreciable cost, or you can include additional formulas to make sure that the total depreciation equals the depreciable cost In this method, the straight-line method is used to determine the rate of depreciation, which is then doubled to provide the rate for the declining balance method. As an example, an asset with a value of \$500 USD with a life expectancy of five years would depreciate \$100 each year using the straight-line method Example: A research company purchases a high-powered microscope for \$100,000 and wants to use the double-declining balance method of depreciation because they know the microscope might be obsolete in five years. To calculate, multiply the value of the asset (\$100,000) by two (double-declining) to arrive at \$200,000

### Double Declining Depreciation eFinanceManagemen

To calculate depreciation under the double declining method, multiply the book value at the beginning of the fiscal year by a multiple of the straight-line rate of depreciation. The double declining balance formula is: Double-declining balance (ceases when the book value = the estimated salvage value 150% declining balance method over a GDS recovery period - Similar to the 200% declining balance method, it provides a larger deduction in the early years rather than the later years of an asset's useful life. Refer to the MACRS Depreciation Methods table for the type of property this method applies to There are many different ways to calculate accelerated depreciation, such as 125 percent declining balance, 150 percent declining balance and 200 percent declining balance, also known as double declining. One of the more common ways is to construct a table of declining yearly values

### Double Declining Balance Depreciation Calculato

The double declining balance depreciation method is generally used when an asset is depreciating at a faster rate at the beginning of its lifespan or where the organization intends to shift profits further into the future by accounting for larger amounts of depreciation at the beginning of the asset's life span Double-Declining Balance Method Double-declining balance method of depreciation is an accelerated form of depreciation. Here, the asset is reduced laboriously in the initial years to decrease the burden of tax and other expenses in the later years The depreciation in this method is charged on the complete purchase price of asset rather than the net of salvage value price in straight line method. In other words we can say that double declining depreciation method uses double the rate of straight line method. It is a common form of accelerated depreciation also known as 200 times declining. The first one is the straight-line depreciation method. It is the most commonly used and straightforward depreciation method. This involves reducing the value of plant, property, and equipment to match its use as well as its wear and tear over time. The second is the double-declining depreciation method The double-declining-balance depreciation method allocates more of the car's cost as an expense in the earlier years of the asset's life. You can calculate the double-declining-balance depreciation expense of a car to see how much its value is decreasing on a balance sheet, which is different than its actual market value Portable and easy to use, Double Declining Balance Depreciation Method study sets help you review the information and examples you need to succeed, in the time you have available. Use your time efficiently and maximize your retention of key facts and definitions with study sets created by other students studying Double Declining Balance. Double Declining Balance Method This method is a mix of straight line and diminishing balance method. Thus, depreciation is charged on the reduced value of the fixed asset in the beginning of the year under this method. This is just like the diminishing balance method Double Declining Depreciation Definition A double-declining depreciation is defined as a method of accounting for the expense of a long-lived asset that depreciates the asset twice as fast as a standard method. When is a double-declining depreciation used? A double-declining depreciation is most often used for assets that lose value quickly

### Declining Balance Method of Depreciation (Examples

The Double Declining Balance (200% Declining Balance) method is also commonly used, as it follows the same principles as the straight-line method, but does so at twice the rate. Thus, if an asset has an estimated useful life of 4 years, straight-line depreciation would be at an average annual rate of 25% The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. The declining balance depreciation method is an accelerated depreciation, the higher depreciation amounts in the first few years of the useful life of an asset and greater tax savings.

The formulae for calculating depreciation using this method is: Double Declining Balance = 2 X Cost of the asset / Useful Life or Double Declining Balance = 2 X Book Value of the Asset / Useful Life. Book value = Cost of the asset - accumulated depreciation value of the asset. Let us understand it through an example This method is used to recognize the majority of an asset's depreciation early in its lifespan. There are two variations of this: the double-declining balance method and the 150% declining balance method. The depreciation amount changes from year to year using either of these methods, so it more complicated to calculate than the straight-line. In our example of straight-line depreciation we were taking straight-line depreciation over a period of eight years. That would be 12.5 percent each year. So, the double declining balances percentage is 25 percent. The depreciation expense for each year is taken by multiplying the remaining book value of the asset by 25 percent The double declining balance calculator also uses the same double declining formula to calculate depreciateion according to the double declining method. Sum of Years' Digits Method: The Sum of Year's Digits Method is known as an accelerated depreciation method that recognizes depreciation at an accelerated rate

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