**An office telephone system cost $32,000.00 with an estimated residual value of $2,000.00. The system has an estimated useful life of 5 years. Using the sum-of-the-years’-digits method, the amount of depreciation for the fourth year is**

**Answer:**

Sum of the Years’ Digits = n(n+1)/2 = 15 (n=5)

now the The forth year depreciation is 2/15 of $34,000.00= 4533.3333

so total sum 5+4+3+2+1=15, so for 4th year the depreciation is 2/15 of $34,000.00. so it is $4533.33