The sum-of-the-years'-digits method of depreciation is being used for a machine with a five-year estimated useful life. What would be the fraction applied to the cost to be depreciated in the fourth year?
A) 4/5
B) 2/5
C) 4/15
D) 2/15

Question

Quizplus · Accepted Answer

The sum-of-the-years'-digits method involves adding the digits of the years (1+2+3+4+5 = 15) and applying fractions based on the reverse order of the years. For the fourth year, the fraction is 2/15.

The Sum-Of-The-Years'-Digits Method of Depreciation Is Being Used for a Machine