Albright Company uses the sum-of-the-years’-digits (SYD) method of depreciation. On
January 1, the company purchased a machine for $50,000. It had an estimated life of
5 years and no residual value. Depreciation for the first year would be

Answer (C) is correct.
The SYD method multiplies a constant depreciable base (cost minus
residual value) by a declining fraction. The numerator is the number of
years of the useful life minus the years elapsed (5 - 0 = 5). The
denominator is the sum of the digits of the years in the asset’s useful life
(1 + 2 + 3 + 4 + 5). The first year’s depreciation expense is therefore
$16,667 [$50,000 x (5 / 15)].