Sum of years digit depreciation

CFA Level I
#1

Came across a qbank question that ask the above. Sharing with the rest. http://www.answers.com/topic/sum-of-years-digits-depreciation

#2

I saw the same thing in Stalla’s passmaster. Apparently it was part of the cirriculum in prior years but no more, reason being is that nobody uses that method of depreciation. We don’t need to know it.

#3

n(n-1)/2 bros, there’s a party in the USA

#4

Don’t recall this in the schweser notes

#5

The sum of digit method is not mentioned in the 2009 curriculum. You can easily calculate depreciation using TA but do remember the depreciation amount compare to other methods and its effects.

#6

I_Passed_Level_1 Wrote: ------------------------------------------------------- > n(n-1)/2 bros, there’s a party in the USA Nah it’s n(N+1)/2, but we can still party in the USA (and Mexico and Ireland for that matter). Use 3 as an example: 3(3+1)/2 = 12/2 = 6 3+2+1 = 6

#7

I_Passed_Level_1 Wrote: ------------------------------------------------------- > n(n-1)/2 bros, there’s a party in the USA Got my amort. sched. like yeeeaahhhhh

#8

jcole21 Wrote: ------------------------------------------------------- > I_Passed_Level_1 Wrote: > -------------------------------------------------- > ----- > > n(n-1)/2 bros, there’s a party in the USA > > > Nah it’s n(N+1)/2, but we can still party in the > USA (and Mexico and Ireland for that matter). > > Use 3 as an example: > 3(3+1)/2 = 12/2 = 6 > 3+2+1 = 6 oh yeah? oh yeah? think youre so smart, then tell me how to calculate the units of production method?

#9

I_Passed_Level_1 Wrote: ------------------------------------------------------- > jcole21 Wrote: > -------------------------------------------------- > ----- > > I_Passed_Level_1 Wrote: > > > -------------------------------------------------- > > > ----- > > > n(n-1)/2 bros, there’s a party in the USA > > > > > > Nah it’s n(N+1)/2, but we can still party in > the > > USA (and Mexico and Ireland for that matter). > > > > Use 3 as an example: > > 3(3+1)/2 = 12/2 = 6 > > 3+2+1 = 6 > > > oh yeah? oh yeah? think youre so smart, then tell > me how to calculate the units of production > method? Check the book playa - as I recall it goes a little something like this: (units of production in the period / total units of production)*(cost - salvage) maybe? Maybe EBV? Getcha google on bay-bee.