Accelerated Depreciation Methods
In Exercise 5.2, we worked on an example using the straight-line depreciation method. In practice, however, some assets (such as a car) lose more value in the beginning of their useful life than in the end. Companies may elect to account for this by using an accelerated depreciation method.
The two most common types of accelerated depreciation methods are:
Sum-of-the-Years’ Digits (SYD)
Double-Declining Balance (DDB)
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