How to calculate depreciation using the sum of years method?

For the sum of service life method, we must first know the annual depreciation rate: annual depreciation rate = the number of years that can still be used in the year The sum of the number of years that can be used in each year = (estimated service life - service life) [Estimated service life * (estimated service life + 1) 2]. Annual depreciation amount = total depreciation accrued * annual depreciation rate.

The sum of the life of the fixed asset = 5 + 4 + 3 + 2 + 1 = 15 or = 5 * (5 + 1) 2 = 15

The total amount of depreciation accrued is: 200000-2000=198000The annual depreciation is as follows:

In the first year, the annual depreciation rate: 5 15-year depreciation amount = 198000*5 15 = 66000 cumulative depreciation 66000

In the second year, the annual depreciation rate: 4 15 years depreciation amount = 198000 * 4 15 = 52800 cumulative depreciation 118800

In the third year, the annual depreciation rate: 3 15 years depreciation amount = 198000 * 3 15 = 39600 cumulative depreciation 158400

In the fourth year, the annual depreciation rate: 2 15-year depreciation amount = 198000*2 15 = 26400 accumulated depreciation 184800

In the fifth year, the annual depreciation rate: 1 15-year depreciation amount = 198000*1 15 = 13200 accumulated depreciation 198000

Annual depreciation rate Remaining useful life Total year-by-year figure of estimated useful life or.

Annual depreciation rate (estimated useful life - useful life) (divided by) estimated useful life x (estimated useful life + 1) 2

Annual depreciation amount (original value of fixed assets, estimated net residual value) x annual depreciation rate.

The amount of depreciation accrued in the first year (200 000-2 000) x 5 15 66 000 yuan.

The depreciation amount accrued in the second year (200 000-2 000) x4 15 52 800 yuan.

Depreciation accrued in the third year (200 000-2 000) x 3 15 39 600 yuan.

The depreciation amount accrued in the fourth year (200 000-2 000) x 2 15 26 400 yuan.

Depreciation accrued in the fifth year 200 000-66 000-52 800-39 600-26 400 13 200 yuan.

Sum of years method (also known as total number of years method):

Annual depreciation rate = 100% of the total number of years of expected useful life

Supplementary example questions: Calculation questions].

The original price of a fixed asset of an enterprise is 20,000 yuan, the estimated service life is 5 years, and the estimated net residual value is 200 yuan. If the sum of years method is used, the annual depreciation amount is calculated as follows:

Correct answer] depreciation in the first year = (20000-200) 5 15 = 6600 (yuan);

Depreciation in the second year = (20000-200) 4 15 = 5280 (yuan);

Depreciation in the third year = (20000-200) 3 15 = 3960 (yuan);

Depreciation in the fourth year = (20000-200) 2 15 = 2640 (yuan);

Depreciation in the fifth year = (20000-200) 1 15 = 1320 (yuan).

Year 1: Taxable Temporary Difference = Book Value - Tax Basis = 437,500-375,000 = 62,500

Let's assume that the total profit for the first year is x1

Entry: Debit: Income Tax Expense x 1 * 25%.

Credit: Tax payable - Deferred income tax liability payable (x1-62500) * 25%.

Deferred income tax liabilities are 62,500*25%.

After the second year, the following is followed by the following years, first to find the taxable temporary difference, then the deferred tax liability, and finally the income tax payable.

Sum of years method.

Accrual Depreciation Formula: Annual Depreciation Rate.

The number of years that can be used in the year The sum of the number of years that can be used in each year = (Estimated service life - Number of years used) [Estimated service life (Estimated service life + 1) 2].

Accrued depreciation = original value - net residual value - impairment provision.

Annual depreciation rate = number of usable years Sum of years 100% annual depreciation amount = (original value of fixed assets.)

Estimated Residual Value) Annual depreciation rate.

Monthly depreciation rate = annual depreciation rate of 12

Monthly depreciation amount = (original value of fixed assets - estimated net residual value) monthly depreciation rate.

Annual depreciation amount = (original value of fixed assets - residual value) Number of years of service The sum of the ordinal numbers of the number of years of use.

The formula for accruing depreciation based on the sum of years method: annual depreciation rate = number of years still available in the year Sum of the number of years still in use in each year = (estimated useful life - used years) [estimated useful life (estimated useful life + 1) 2].

Annual depreciation rate = the number of years that can be used in the year The sum of the number of years that can be used in each year = (estimated service life Number of years used) [Estimated service life (estimated service life + 1) 2] Annual depreciation amount = Total depreciation accrued Annual depreciation rate.

There is a piece of equipment, the original value is 78,000 yuan, the estimated residual value is 2,000 yuan, it is expected to be used for 4 years, and the annual depreciation amount is calculated by the sum of the number of trial years.

Sum of years = 1 + 2 + 3 + 4 = 10

Year 1 = (78000-2000) (4 10) = 30400 Year 2 = (78000-2000) (3 10) = 22800 Year 3 = (78000-2000) (2 10) = 15200 Year 4 = (78000-2000) (1 10) = 7600 <>

The formula for calculating depreciation by the sum of years method, annual depreciation rate = (1 - residual value rate) * remaining useful life The sum of the estimated service years.

For example, if the residual value rate is 5% and the total service life is 5 years, then the depreciation rate of the first year = (1-5%)*5 15, and the depreciation rate of the second year = (1-5%)*4 15.

The sum of years method, also known as the depreciation life product method or the decreasing series method, is a type of accelerated depreciation method for fixed assets. It is a method of calculating the depreciation amount of fixed assets by multiplying the original value of fixed assets minus the net amount of the declining value of the circle by decreasing fractions year by year, and the numerator of the decreasing fraction represents the number of years that the fixed assets can still be used: the denominator represents the sum of the annual numbers of the number of years of use, assuming that the service life is n years, the denominator is 1 + 2 + 3 +...

tn=n(n+1):2, the relevant calculation formula is as follows.

Annual depreciation rate = (1-day depreciation period - number of years used) (depreciation period x (depreciation period + 1): 2) x 100%.

Annual depreciation date = (original value of fixed assets - estimated residual value) x annual depreciation rate The sum of years method is used to calculate the depreciation of fixed assets, which reflects the principle of prudence in accounting.

For the sum of service life method, we must first know the annual depreciation rate: annual depreciation rate = the number of years that can still be used in the year The sum of the number of years that can be used in each year = (estimated service life - service life) [Estimated service life * (estimated service life + 1) 2]. Annual depreciation amount = total depreciation accrued * annual depreciation rate.

The sum of the life of the fixed asset = 5 + 4 + 3 + 2 + 1 = 15 or = 5 * (5 + 1) 2 = 15

The total amount of depreciation accrued is: 200000-2000=198000The annual depreciation is as follows:

In the first year, the annual depreciation rate: 5 15-year depreciation amount = 198000*5 15 = 66000 cumulative depreciation 66000

In the second year, the annual depreciation rate: 4 15 years depreciation amount = 198000 * 4 15 = 52800 cumulative depreciation 118800

In the third year, the annual depreciation rate: 3 15 years depreciation amount = 198000 * 3 15 = 39600 cumulative depreciation 158400

In the fourth year, the annual depreciation rate: 2 15-year depreciation amount = 198000*2 15 = 26400 accumulated depreciation 184800

In the fifth year, the annual depreciation rate: 1 15-year depreciation amount = 198000*1 15 = 13200 accumulated depreciation 198000

Sum of years method depreciation rate Remaining useful life 100% of the sum of years of expected useful life, sum of years method depreciation amount (original value of fixed assets - estimated net residual value) depreciation rate.

For example, if the original value of fixed assets is 1 million, the residual value rate is 5%, and the expected service life is 5 years, then the depreciation amount in the first year = 1 million * (1-5%) * 5 15, and the depreciation amount in the second year = 1 million * (1-5%) * 4 15.