This is the simplest and most commonly used method. It spreads the cost evenly across the asset's life. (Cost - Salvage Value) / Useful Life
(Remaining Life / Sum of the Years' Digits) * (Cost - Salvage Value) depreciation calculation
Assets that lose value quickly or become obsolete fast, such as computers and high-tech machinery. 3. Units of Production This is the simplest and most commonly used method
2 * (1 / Useful Life) * Book Value at Beginning of Year depreciation calculation
This is an "accelerated" method. It results in higher depreciation expenses in the early years and lower expenses later.