7-16u Sum-of-the-Years’-Digits Method (SYD)SYD j : depreciation charge for the jth yearRDVj : remaining depreciable value at theend of jth yearu Declining-Balance Method (DB)DB j : depreciation charge for the jth yearRDVj : remaining depreciable value at theend of jth yearI% : depreciation factorPress 3(DEPREC) from the Financial 2 screen to display the following input screen fordepreciation calculation.6( g) 3(DEPREC)n............ useful lifeI% ......... depreciation ratio in the case of the fixed percent (FP) method, depreciation factor inthe case of the declining balance (DB) methodPV......... original cost (basis)FV......... residual book valuej............. year for calculation of depreciation costY−1 ........ number of months in the first year of depreciationn (n +1)Z = 22(n' integer part +1)(n' integer part + 2*n' fraction part )Z' =SYD1 = {Y–1}12nZ × (PV – FV )n'– j+2Z' )(PV – FV – SYD1 ) ( j≠1)SYD j = (RDV1 = PV – FV – SYD1RDVj = RDVj –1 – SYD jn'– (n +1)+2Z' )(PV – FV – SYD1) ({Y–1}≠12)12–{Y–1}12×SYDn+1 = (12{Y–1}n' = n –n (n +1)Z = 22(n' integer part +1)(n' integer part + 2*n' fraction part )Z' =SYD1 = {Y–1}12nZ × (PV – FV )n'– j+2Z' )(PV – FV – SYD1 ) ( j≠1)SYD j = (RDV1 = PV – FV – SYD1RDVj = RDVj –1 – SYD jn'– (n +1)+2Z' )(PV – FV – SYD1) ({Y–1}≠12)12–{Y–1}12×SYDn+1 = (12{Y–1}n' = n –RDV1 = PV – FV – DB1({Y–1}≠12)({Y–1}≠12)100nY–1I%DB1 = PV ×100nI%12××DB j = (RDVj–1 + FV )RDVj = RDVj–1 – DBjDB n +1 = RDVnRDVn+1 = 0RDV1 = PV – FV – DB1({Y–1}≠12)({Y–1}≠12)100nY–1I%DB1 = PV ×100nI%12××DB j = (RDVj–1 + FV )RDVj = RDVj–1 – DBjDB n +1 = RDVnRDVn+1 = 0
