Calculate accumulated depreciation and book value using three standard methods.
Formulas: Straight-Line: (Cost − Salvage) / Life per year DDB: 2/Life × Beginning Book Value SYD: (Remaining Life / Sum of Years) × Depreciable Base
Understanding Depreciation Methods
Straight-Line spreads cost evenly. Double-Declining front-loads depreciation (more in early years). Sum-of-Years-Digits also accelerates depreciation but less aggressively than DDB.
When to Use Each Method
Straight-Line: Most common for financial reporting; simple and predictable
DDB: Assets that lose value quickly (vehicles, technology)