Refer to the Accounting Firm scenario. Compute the depreciation expense for April 1 through December 31 of the first tax year and all 12 months of the second year.

Sum-Of-The-Years-Digits

Sum-Of-The-Years-Digits is an accelerated depreciation method where an asset's depreciation expense is higher in the earlier years of its useful life and decreases over time.

Resale Value

The estimated market value of an asset at the end of its useful life or the price at which it can be sold again.

Office Furniture

Items and fixtures used in an office environment for working and organisational purposes, such as desks, chairs, and filing cabinets.