Sum of Years Digit Method of Depreciation Clause Samples

Sum of Years Digit Method of Depreciation. Example: Solution: 1. In Case of Profit = Salvage Value – Tax Paid on Profit on Sale 2. In Case of Loss = Salvage Value + Tax Saved on Loss on Sale Example A (In case of Profit): Solution: Year Cash flows 1. Calculation of Depreciation: 2. Calculation of Profit & Loss on Sale of Asset: Example B (In case of Loss): If Salvage Value is 35,000 Solution: 3. Calculation of Profit & Loss on Sale of Asset: Example: Solution: Year Cash flows Working Note