... decimal) and n is number of year. These two methods are more commonly used I did a research on other methods on depreciation, and I found a method called Sum of Year's Digit on the internet, http://beginnersinvest.about.com/library/lessons/bl-sumoftheyearsdigits.htm Sum of the Year's Digits Depreciation: This includes the sum of the year's digit and the reducing balance method. This assumes that the fixed asset loses most of its value in the first few years. To calculate depreciation charges using the sum of the year's digits method, take the expected life of an asset (in years) count back to one and add the figures together. i.e. useful economic life of 10 years = 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 Sum of the years = 55 First year the asset will depreciate 10/55 x 100% = 18.18% Second year the asset will depreciate 9/55 x 100% = 16.36% Third ...

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