... of useful life, in reverse order. (In our example,the fractions are 6 21 , 5 21 , 4 21 , 3 21 , 2 21 , and 1 21 .) In a given year, the depreciationwrite-off is the asset’s original cost ... Balance Method* Method† MethodYear 1 $1,600 $3,333 $2, 500 $2, 743Year 2 1,600 2, 222 1,875 2, 286Year 3 1,600 1,4 82 1,407 1, 829 Year 4 1,600 988 1,406 1,371Year 5 1,600 658 1,406 914Year 6 1,600 917 ... straight-line in Year 4; required for 15- and 20 -year IRS asset classes.hel78340_ch04.qxd 9 /27 /01 11:07 AM Page 143134 Financial Analysis: Tools and Techniques The relationships expressed here...