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Sum of the years-digits depreciation
Sum of the years-digits depreciation is a method of depreciation under which the annual deduction for depreciation is computed by applying changing fractions to the basis of property. The numerator of the fraction changes each year to a number that corresponds to the remaining useful life of the property. The denominator, which remains constant, is the sum of all the years' digits corresponding to the estimated useful life of the property.
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- Part of Speech: noun
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