Sum of the Years' Digits Depreciation

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This video explains the sum-of-the-years'-digits depreciation method, and illustrates how to calculate depreciation expense using the sum-of-the-years'-digits depreciation method.
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Опубликовано:

28 авг 2014

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Комментарии : 73

@ssach7 9 лет назад

You made in 10 minutes what my Finance teacher couldnt do in 3 hours

@instaminox 7 лет назад

In class most of the teachers try to make the subject too complex than what it actually is. It makes them feel that they are important and achieved something lol. Unfortunately, its how it is in Engineering.

@VisualsByVC 4 года назад

This is so in point.

@ssach7 3 года назад

@Lucca Jamal both of you shut the fuck up, spammers

@elvenblood 7 лет назад

fantastic mate, really got it. you've got a strong appreciation of clarity.

@Edspira 7 лет назад

Thank you my friend!

@rlicky5040 4 года назад

Hey man, thank you so much for the help! I heard you apologizing multiple times for your penmanship and other things. Just wanted to say, there's no need to apologize! :-) We appreciate you and the favor you're doing for us :-)

@kylemoylan384 Год назад

Excellent explanation throughout the entirety of this video, you made it crystal clear!

@jesusc2699 4 года назад

This videos is 5 years old and still does a better job than McGraw Hill 2019/2020 Accounting books. Thank you. The was easy.

@techzone2009 3 года назад

RU-vid should give more money to teachers than other content creators ....love from Nepal ❤️

@johnvizintos2207 8 лет назад

Thanks for the great video! You were able to show figuring out the fraction in a much friendlier fashion than the way my teacher explained it.

@Edspira 8 лет назад

+John Vizintos I'm glad you liked it!

@lyneakrystel8066 3 года назад

Thank you for this video! It's really helpful and easy to understand.

@courtnimartin3447 5 лет назад

Thank you for this. I was really struggling to understand this through my textbook.

@uthamarajk 3 года назад

Thank you so much for the clear and concise explanation.

@shahstreet4069 5 лет назад

Better than Becker! It’s been years since I’ve studied this! Thank you for the refresher

@aayushgupta4491 4 года назад

For a beginner , it's a good start by learning through this video...

@brandonspiegel2293 5 лет назад

I appreciate this depreciation video.

@ryanp6999 5 лет назад

nice

@Competitive_vr Год назад

Thank you very much. This made it much more easy to understand.

@hrk4654 4 года назад

@edspira Thanks for such an easy explanation of SOYD method.

@Amanthius 7 лет назад

Thanks for the great example!

@rob8482 7 лет назад

Thanks, always appreciated.

@h0ebart 6 лет назад

You already know you're amazing.

@misterjag 6 лет назад

Very clear explanation -thanks!

@Edspira 6 лет назад

Happy to help!

@adityarao7255 3 года назад

excellent video...u explained it very nicely sir..

@junlindong4419 2 года назад

Explain it so well! Thank you. :)

@sachkagana1939 8 лет назад

thank you so much. After I read book i couldnt still figured it out. Now i got it. i dont like when my teacher explained to me with the formula.

@Edspira 8 лет назад

+Sachka Gana I'm glad it clicked! It's probably the most confusing way to calculate depreciation. Have a great winter break :)

@MyFinancialFocus 2 года назад

Explained better than four years of college and thousands of dollars of debt lol

@inesm3601 8 лет назад

Great video! Thank you!

@Edspira 8 лет назад

Happy to help! Take care & best wishes :)

@nona4536 5 лет назад

Thank you! This really helped :)

@neilandrews7053 2 года назад

Brilliant video. Very useful

@Edspira 2 года назад

Thank you!

@letran1644 8 лет назад

thank you!

@EatingMachine27 6 лет назад

Thank helped me a lot

@sadafmehreen1889 2 года назад

great video

@gilliantaylorr7854 5 лет назад

WOW thank you!

@prachikhatri9471 6 лет назад

Thank you it's such great help!

@Edspira 6 лет назад

No problem!

@sakicawil1461 6 месяцев назад

Thanks man

@ankitpaul8540 4 года назад

Great ....sir

@ivar5021 3 года назад

Thank you so much for this video. Good grief. You're a godsend.

@Edspira 3 года назад

No problem!

@Ravenleaf182 4 года назад

what do you do when you have a partial year? like if you use this method but its in october and you need to do 3/12 for the end of year, using this method?

@danielcicakdc 5 лет назад

Really like the Channel thx ;)

@maryumrajput7346 3 года назад

Keeep it upp sir great ♥️♥️

@therevman5940 5 месяцев назад

wish i found your channel earlier im literally watching this for my final final exam 😭

@Amy1664880129 7 лет назад

Is this the same as diminishing balance method?

@malumcastroes4182 2 года назад

Equipment was purchased for R460, 000 with an estimated life of 10 years and a residual value of R19, 000. What is the depreciation expense for the first 5 years using each of the following separate depreciation methods? a. Double-declining balance (15) b. Sum of the years’ digits this one is different please help

@saharhashim8291 7 лет назад

manythanks

@Edspira 7 лет назад

Sure thing!

@niravkrshah5153 3 года назад

If useful life is 10 yrs then any shortcut formulla to derive fraction. Then first year would be 10/55 , second year 9/55 so. On.. ?

@Niko132 Год назад

What if the depreciation is 2 years total how would that factor out?

@kqg6306 2 года назад

First of all thank you great explanation.second I can’t understand why using life is 1+2+3…+5 =15y not 5y???😭

@jarrodnaude4104 2 года назад

How does this change if the asset was not bought at the beginning of the 1st year? e.g. The asset is purchased in June and the year-end is Dec 31, do we still depreciate the entire year?

@jarrodnaude4104 2 года назад

Answer: You include the months in the remaining life column. So if you only had the assets for 6 months in the first year then the second year's remaining life would be 4.5

@camypham 5 лет назад

Question: What if the asset was acquired during the year? Like in May? How would computation change?

@bryanisraeltorres7643 4 года назад

If I bought an equipment for 1M, 10years of useful life without any salvage value on May 01, 2019. The depreciation in Dec. 2019 is 1M x 10/55 x 8/12 The depreciation on 2020 is 1M x 10/55 x 4/12 1M x 9/55 x 8/12

@bryanisraeltorres7643 4 года назад

Question. If I bought a machinery on Jan 01, 2019 with useful life of 5 years and without any salvage value and on Jan 01, 2020 the entity estimated that the machinery has a salvage value of 200k. How do I compute for the depreciation in 2020? (the entity uses syd.)

@Jacob-ry3lu 4 года назад

This is a change in accounting estimate. You simply recalculate the new depreciation expense based on the new terms and use that number going forward. So, you take the book value in 2020 (Cost - Accum. Depreciation), and calculate syd depreciation based on 4 years remaining useful life and a $200k salvage value. You don't have to change the prior period, you just recalculate depreciation going forward. If the estimate changes again in the future you do the same, recalculate the depreciation based on the new terms. One thing I should warn is when recalculating depreciation, remember you use the REMAINING useful life, not the same useful life of 5 you used when you first bought the asset.

@petercole2592 Год назад

Was dissapointing that you cut your video short at end. that 5th year is important to understand how it is 5000 minimum. Now I have to watch another video somewhere

@malumcastroes4182 2 года назад

Hy sir can I ask some questions I am consufed here

@Skiiandme 6 лет назад

I was just sitting and listening to the video and a sudden realization struck me. Who the heck pays 50k for a Pizza oven?Just a thought. Haha Thanks for the video tho!! Very simple and understandable. Now im also wondering why i waste time and money on a classroom when a free online videos can do better.

@Edspira 6 лет назад

Ha! I'm glad you were amused by this. Thanks for the compliments and best of luck to you in your studies!

@georgeayoti1245 2 года назад

sounds like Professor Leblanc

@dilhack2682 4 года назад

This doesn't seem counter-intuitive at all...at least to me it seems to be the better of the three methods...Great explanation.

@charliewilliams8879 4 года назад

Cosenza Ltd acquired a tractor with a cost of $250 000, an estimated useful life of 6 years and a residual value of $30 000. Sum-of-years-digits depreciation was used. Ignore GST. Required (a) Prepare the journal entries for each of the following independent events: i. Sell the tractor for cash of $120 000 after 2 years of use. ii. Trade in the tractor for a $40 000 allowance after 4 years on another tractor with a cash price of $275 000. iii. Scrap the tractor after 5 years of use. The tractor was given to a scrap dealer who pays $2000 to remove it. Can someone help with this question. Followed the video but I cant get the solution answer (a) i. Cash at Bank 120 000 Proceeds from Sale of Tractor 120 000 Sale of tractor. Carrying Amount of Tractor Sold 134 762 Accumulated Depreciation - Tractor 115 238 Tractor 250 000 Recognition of expense of tractor sold.

@charliewilliams8879 4 года назад

EDIT: Got the answer, just had to add years 1 and 2 depreciation together for accumulated depreciation debit