Creating an Accelerated Depreciation Schedule

The Accelerated Depreciation Schedule is the process where more depreciation is applied in the earlier periods of the asset’s life. The method uses a technique of first summing up the years’ digits. Say you have to cover a depreciation schedule of five years, a value of 15 is first calculated as 1 + 2+ 3 + 4 + 5 = 15. If the schedule is for ten years, then it would be 55, like this: 1 + 2 +3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55.
The sum is then used as the denominator in calculations with the actual digits themselves to determine a percentage per period. In a five-year depreciation schedule, the depreciation for the first period is calculated as (5 15) Depreciable Cost, the second period depreciation is calculated as (4 15) Depreciable Cost.
If your asset costs $5000 with a life of 5 years and a salvage of $500 then the depreciation would like this in the following table.

Creating an Accelerated Depreciation Schedule

PeriodCalculationResult
Total$4,500.00
First Year(5/15)X4500$1,500.00
Second Year(4/15)X4500$1,200.00
Third Year(3/15)X4500$900.00
Fourth Year(2/15)X4500$600.00
Fifth Year(1/15)X4500$300.00
To create the schedule in MS Excel we will use SYD(cost, salvage, life, per) function.
Costs refers to the initial cost of the asset,
Salvage refers to the value of the asset after it life,
Life refers to the total lifetime of asset that can be used and
Per refers to the period that you want to calculate the depreciation value.
Fill out all this data in Excel sheet and and will have your Depreciation value.

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