## 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: $\frac{1}{15}$