Depreciation in Accounting - Meaning, Types & Examples
Depreciation in Accounting - Meaning, Types & Examples
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Depreciation Methods
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Depreciation methods are sometimes used by businesses and individuals to estimate the value of an asset over a life span of n years. In the sum-of-year's-digits method, for each year k=1,2,3, …, n, the value of an asset is decreased by the fraction Ak=(n-k 1)/(Tn) of its initial cost, where Tn=1 2 3 ⋯ n. (a) If n=8, find A1, A2, A3, …, A3 (b) Show that the sequence in (a) is arithmetic, and find Sg. (c)If the initial value of an asset is 1000, how much has been depreciated after 4 years? | Nume
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