Asset C3PO has a depreciable base of $16.5 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method?

Accumulated depreciation at the end of year 5 is $12 million

Explanation:

The relevant number of years with which to depreciate the asset is from 1 to 10, however these numbers are taking in descending in order to have more depreciation in early years and less in later years.

Years relevant weighting number

1 10

2 9

3 8

4 7

5 6

6 5

7 4

8 3

9 2

10 1

Total weighting 55

The accumulated depreciation at the end of year 5 would depreciation from year 1 to year 5 calculated as shown below:

(10+9+8+7+6) / 55*$16.5 million=$12 million

In other words, at the end of year $12 million would have been charged as expense to income statement.