## Accounting and Finance for Lawyers

### Sum of the Years' Digits Method

SYD depreciation multiplies the cost minus the scrap value by a fraction based on the years.

Example Fractions Over Five Years $5+4+3+2+1=\mathrm{15}$
• Year 1: $\frac{5}{15}$
• Year 2: $\frac{4}{15}$
• Year 3: $\frac{3}{15}$
• Year 4: $\frac{2}{15}$
• Year 5: $\frac{1}{15}$