Question 3: Sum-of-digit method

The sum of years' digits method is a form of accelerated depreciation that is based on the assumption that the productivity of the asset decreases with the passage of time. Under this method, a fraction is computed by dividing the remaining useful life of the asset on a particular date by the sum of the year's digits.

Problem

Snitcher Corp. purchases a property for $100,000. It has an estimated salvage value of $10,000, and a useful life of five years.

Task: prepare the Amortization table under the SYD