Sum-of-the-Years’-Digits Depreciation is an accelerated depreciation method that allocates a higher depreciation expense in the earlier years of an asset’s useful life. This technique calculates depreciation by multiplying the asset’s depreciable base by a fraction, where the numerator is the remaining life of the asset and the denominator is the sum of the years’ digits. This method is often used to match higher initial costs with revenue generation.
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