![]() ![]() Therefore, the depreciation expense in the first year is $3,000. The equation is as follows: D e p r e c i a t i o n = ( C o s t − s a l v a g e v a l u e ) ∗ ( n n + ( n − 1 ) + ( n − 2 ). ![]() This method relies on an equation that is similar in overall effect to declining balance depreciation, but is calculated differently. Use sum-of-the-years'-digits depreciation.
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