Depreciation (to the nearest dollar) for 2009, using sum-of-the-years' digits, would be:
A)$ 9,091.
B)$24,545.
C)$27,273.
D)$ 8,182.($200,000 20,000) 10/55 3/12 = $8,182

Question

Quizplus · Accepted Answer

The sum-of-the-years' digits method allocates a larger portion of depreciation expense to the earlier years of an asset's life. The formula for calculating depreciation expense using this method is:Depreciation expense = (Cost of asset - Salvage value) x (Remaining useful life / Sum of the years' digits)In this case, the cost of the asset is $200,000, the salvage value is $20,000, the remaining useful life is 10 years, and the sum of the years' digits is 55.Therefore, the depreciation expense for 2009 would be:Depreciation expense = ($200,000 - $20,000) x (10 / 55) x (3 / 12) = $8,182

Depreciation (To the Nearest Dollar) for 2009, Using Sum-Of-The-Years' Digits