More complicated than the first two depreciation methods, sum-of-the-years depreciation adds the sum of the useful life of the asset. A computer system acquired on January 1 at a cost of $261,000 has an estimated useful life of ten years. Assuming that it will have no residual value. The straight-line method of depreciation is widely used and simple to calculate. Depreciation by Two Methods. The formula to determine the depreciation schedule is the Depreciation Expense = (100% / Useful life) x 2. Determine the depreciation for each of the first two years by the straight-line method. Other Methods of Depreciation. It is based on the principle that each accounting period of the asset's life should bear an equal amount of depreciation. Using the example from above, an asset with a … As the name suggests, it counts expense twice as much as the book value of the asset every year. Method 1 - Straight-line depreciation. A change from an impermissible method of determining depreciation for depreciable property, if the impermissible method was used in two or more consecutively filed tax returns. a. The formula is: Yes, many companies use two or more methods of depreciation. This is one of the two common methods a company uses to account for the expenses of a fixed asset. In addition to straight line depreciation, there are also other methods of calculating depreciation Depreciation Methods The most common types of depreciation methods include straight-line, double declining balance, units of production, and sum of years digits. It is acceptable and common for companies to depreciate its plant assets by using the straight line method on its financial statements, while using an accelerated method on its income tax return. This method uses a factor of two, when determining how much is written off each year. 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