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A. Productivity of Loader

Example- 1 (The following example demonstrates the process for estimating loader

production)

A 4-cy wheel loader will be used to load trucks from a quarry stock pile of

processed aggregate having a maximum aggregate size of1¼in. The haul distance will

be negligible. The aggregate has a loose unit weight of 3,100. Estimate the loader

production in tons based on 50-min/hour efficiency factor. Use a conservative fill

factor.

Solution

Step-1 : Size of bucket = 4-cy

Step-2: Bucket fill factor (Table A-1), aggregate over 1 in., 85-90%, use 85%

conservative estimate

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REFISA JIRU 2
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Example 1.1

The loader in example 6 will also be used to charge the aggregate bins of an asphalt

plant that is located at the quarry. The one way haul distance from the 1¼ in. Aggregate

stockpile to the cold bins of the plant is 220ft. The asphalt plant uses 105 tons per hour

of 1 ¼ in. Aggregate. Can the loader meet the requirement?

Solution

Step 1&2 similar to the above Example

Step-3: Typical fixed cycle time (Table A-4) 4-cy wheel loader, 30 to 33 sec, use 30 sec.

From Table A-2 , Travel speeds forward:

First, 4.3 mph; second, 7.7 mph; third, 13.3 mph

Travel speed reverse:

First, 4.9 mph; second, 8.6 mph; third, 14.9 mph.

Travel loaded: 220 ft, because of short distance and required time to accelerate and

brake, use 80% first gear maximum speed.

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1meter = 3.281ft,  1miles/hr = 5280ft/hr = 88ft/min

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EXAMPLE 2 – PRACTICAL EXERCISE

(Truck production)

Ten 25 ton/18 CY rear dump trucks with low pressure tires are available to haul a rock

dirt/gravel mixture. The wheel loader being used has a 4.25 CY bucket.

The haul and return, over poorly maintained earth, is 3 miles. It is a downhill grade of

1.25% going to the dump area. Net truck weight is 36,860 lb. Work hour efficiency is 55

minutes

SOLUTION

STEP 1 BUCKET LOADS

Number of bucket loads required to fill the truck

Truck capacity = 18 CY

Dirt/gravel mixture

From Table 4.3, loose unit weight is 2,600 lb/LCY

Fill Factor wheel loader (Table 8.6) 100- 120%, use average 110%

Loader bucket capacity = loader bucket x Fill Factor =4.25 x 1.1= 4.675 CY

Truck capacity 18
Bucket loads    3.85
Loader bucket capacity 4.675

Bucket loads must be an integer number, Therefore use either 3 or 4 bucket loads

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STEP 2 LOAD TIME

For 4.25 cy bucket Table 8.9. Bucket cycle time 30 - 33 sec, use average 31.5sec=0.524

min

3 bucket loads:

Truck volume =No. bucket x Loader bucket capacity =3 x 4.675= 14 LCY

Check load weight against gravimetric capacity of truck

2,600
Load weight  Truck Volume  Material unit weight  14 LCY   18.2 tn  25 tn ok !
2,000
Load time  Number of bucket  Cycle time  3x 0.525 = 1.58 min.

4 bucket loads:

Truck volume = 18 LCY and the excess spills off

Check load weight against gravimetric capacity of truck

2,600
Load weight  Truck Volume  Material unit weight  18 LCY   23.4 tn  25 tn ok !
2,000
Load time  Number of bucket  Cycle time  4x 0.525 = 2.10 min.

STEP 3 HAUL TIME

If tire penetration is unknown Rolling Resistance (lb/ton) can be estimated from the

information in Table 5.1

For Poorly maintained earth

Roll Resistance factor =70 to 100 lb/ton,

Use average 85 lb/ton

Resistance factor lb tn  85

Roll resistance    4.25%
20 lb tn 20

REFISA JIRU 6
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**Rear dump tracks (large diameter of tyre) has low pressure**

When travelling downhill, grade assistance is negative.

3.0%
Total Resistance(@3%) = RR  GA  4.25 % + (-1.25%) =  85  60 lb/ton
4.25%
Net truck weight 36,860 lb or 18.43 ton1 ton  2000 lb 

3 BUCKET LOAD

Gross wt. =Load weight + Empty vehicles weight=18.43 + 18.20 =36.63 tons

Rimpull = Total Resistance  payload Gross weight   60 lb/ton  36.63 ton = 2,200 lb

From table 3.1 correspondent to Rimpull of 2,200lb, haul speed is 35 mph

Haul distance  miles   5,280 ft mile 3  5280

Haul time    5.143min
88  Haul speed 88  35

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4 BUCKET LOAD

Payload = Empty vehicle weight + materials weight = 18.43 + 23.40 = 41.83 tons

Rimpull = 60 lb/ton x 41.83 ton= 2,510 lb

From table 3.1 correspondent to Rimpull of 2,510 lb, haul speed is 22 mph

Haul distance  miles   5,280 ft mile 3  5280

Haul time    8.182min
88  Haul speed 88  22

STEP 4 RETURN TIME

Empty truck weight 36,860 lb or 18.43 tons (1ton  2000pounds)

When the vehicle is travelling up a grade, grade resistance is positive.

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Rolling resistance, 4.25%

Grade resistance load to dump 1.25%

5.5%
Total Resistance = 4.25 % + 1.25% =  85  110 lb/ton
4.25%

Rimpull = Total Resistance  Empty truck weight  110 lb ton  18.43 ton = 2,030 lb

From table 3.1 correspondents to Rimpull of 2030lb

Return speed is 35 mph

RETURN DISTANCE (FT) 3 miles  5,280 ft / mile

RETURN TIME    5.143min
88  HAUL SPEED 88  35

STEP 5 DUMP TIME

Rear Dump Trucks must be spotted before dumping

Total dump time averages about 2 minutes. Use 2.0 minutes

STEP 6 TRUCK CYCLE TIME

3 bucket loads

Load time. 1.580 min

+ Haul time 5.143 min

+ Dump time 2.000 min

+ Return time 5.143 min

Cycle time 13.866 min

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4 bucket loads

Load time 2.100 min

+ Haul time. 8.183 min

+ Dump time 2.000 min

+ Return time 5.143 min

Cycle time = 17.426 min

STEP 7 TRUCKS REQUIRED

3 bucket loads

Truck Cycle time 13.866

Trucks required  1   1
Load Cycle time 1.58

Trucks required = 9.8

Must be an integer number therefore 10 trucks

4 bucket loads

Truck Cycle time 17.426

Trucks required  1   1
Load Cycle time 2.10

Trucks required = 9.3

Must be an integer number therefore 10 trucks

STEP 8 EFFICIENCY

55 min
Working hour efficiency (E)   0.917
60min

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STEP 9 PRODUCTIONS

3 bucket loads

The loader will control production if at least one extra truck is used.

60  Truck Load (LCY)

Production (LCY hr)   Efficiency
Load time (min)

14.025 LCY
PRODUCTION (LOADER ) =  0.917  488 LCY hr
1.58 60hr
4 bucket loads

The loader will control production if at least one extra truck is used

60  Truck Load (LCY) 18 LCY

PRODUCTION (LOADER ) =  Efficiency   0.917  471 LCY hr
Load time (min) 2.10 60 hr
For 3 bucket loads 10 trucks production is 488 LCY hr

For 4 bucket loads 10 trucks prduction is 471 LCY hr

If only 8 trucks are AVAILABLE the trucks control production

3 bucket loads

Truck Load (LCY)

PRODUCTION (TRUCK ) = 60   Efficiency  Number of trucks
Truck cycle time (min)
14.025 LCY
PRODUCTION (TRUCK ) = 60   0.917  8  445 LCY hr
13.866 min

4 bucket loads

Truck Load (LCY)

PRODUCTION (TRUCK ) = 60   Efficiency  Number of trucks
Truck cycle time (min)

18 LCY
PRODUCTION (TRUCK ) = 60   0.917  8  454 LCY hr
17.426 min

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Truck Available 3 Buckets (LCY) 4 Buckets (LCY)

10 488 471

9 488 471

8 445 454

The rimpull is the equivalent of all resistance forces which are in opposition to the truck

movement. Rimpull is proportional to the truck weight and road conditions.

The rimpull is the result of three factors:

 Road grade

 Rolling resistance of the ground (soil friction

 Internal friction (this is usually negligible)

Production Issues:-

1) Reach of the excavator

2) Dumping height of the bucket

3) Width of the bucket

Tyres: - 1) Proper tyre size

2) Maintaining correct air pressure

3) Based on resistance, which surface of the road offers to penetration rigid road

surface- small diameter high pressure yielding road surfaces- large diameter low

pressure

Truck safety:-

1) Conduct hazard assessment of the work everyday, and ensure operators and drivers

are aware of hazards

2) Ensure berms are adequately built

3) Operator should follow all operating signals

4) Use of spotter while backing with blind spot

5) Should stay out of vehicle travel path

6) Wear high visibility safety clothing

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EXAMPLE 3

Given: its Caterpillar 725 Articulated Truck:

Truck Net empty weight = 22,260 kg

Truck Payload = 23,590 kg

Truck heaped capacity = 14.4 m3

Excavator heaped capacity = 1.9 m3

Quantity of excavation material = 20000 m3

Haul road type = smooth roadway (rolling resistance = 1.5%) (Table 4.5)

Haul material type is dry clay (loose material weight = 1480 kg/m3, bucket fill factor is

90%, excavator cycle time is 23 seconds) .The haul road from the borrow site to the

dump is 4 km uphill grade of 2%, Job efficiency is 50 minutes per hour with road legal

speed is 90 km/hr . Operators are good = 0.95. Estimate the earthmoving productivity

SOLUTION

STEP 1: BUCKET LOADS

Number of bucket loads required to fill the truck

Truck capacity = 14.4 LCM

For Dirt/gravel mixture, fill Factor wheel loader is 90%

Excavator bucket capacity = Excavator bucket  Fill Factor = 1.90 x 0.9 = 1.71LCM

14.4
Bucket Loads Balanced number of buckets  = = 8.42
1.71

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The actual number of buckets must be an integer numbers we have 8 or 9 buckets

STEP 2: LOAD TIME

Load time = Bucket cycle time  No. of bucket loads

8 buckets

 23 
Load time = Number of bucket x Cycle time  8    = 3.067 min
 60 

Load volume = No of bucket  Excavator bucket capacity  8 x 1.71 = 13.68 m3 < 14.4 m3 OK !

Load weight = Load volume  Loose unit weight  13.68 x 1480 = 20,246.4 kg < Payload OK !

9 buckets

 23 
Load time = Number of bucket x Cycle time  9    = 3.45 min
 60 

Load volume = No of bucket  Excavator bucket x Fill Factor  9 x 1.9 x 0.9 = 15.39 m3  14.4 m3
Use 14.4 m3
Load weight = Load volume  Loose unit weight  14.4 x 1480 = 21,312 kg < Payload OK !

STEP 3: HAUL TIME

Roll Resistance factor lb tn 

Roll resistance 
20 lb tn

Roll Resistance factor (1.5%) = 1.5 x 20 lb/ton = 30 lb/ton,

Grade Resistance factor( ) = 20 x percent grade

Grade Resistance (+2%) = 2 x 20 lb/ton = +40lb/ton

REFISA JIRU 14
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Total Resistance = 70 lb/ton

Engine horsepower = 301 hp,

ft  lb mile  lb ft  lb km  lb
1hp  550  375  1,980,000  603.504
sec hr hr hr

1kg  909.09 ton, 1miles  5280ft, 1 ton  2,000 lb, 1miles  1.60934km

For 8 buckets

42,506.4
Weight fully loaded = 22,260 + 20,246.4 = = 46.757 lton (for haul speed)
909.09

274  hp  efficiency
Rim Pull(kg) =
Speed km hr 

Rimpull  Road grade%  Rolling resistance%  Truck Weight

375  Engine horse power(hp)

Haul Speedmiles hr  
Total Resisance lb ton   Weight of fully loaded(ton )

375  301
Haul Speed =  1.61 = 55.52 km/hr
46.757  70

Haul distance 4
Haul time =   60 = 4.3227 min
Haul speed 55.52

For 9 buckets

43,572
Weight fully loaded = 22,260 + 21,312 = = 47.929 lton (for haul speed)
909.09

375  Engine horse power(hp)

Haul Speed(km hr)   1.6093
Total Resisance  Fully loaded weight

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375  Engine horse power(hp)

Haul Speed(miles hr) 
Total Resisance  Fully loaded weight

301  375
Haul Speed = = 33.643miles hr  54.166 km/hr
47.929  70

Haul distance 4
Haul time =  x 60 = 4.4308 min
Haul Speed 54.166

STEP 4: RETURN TIME

The effect of gravitational force in aiding movement of a vehicle down a slope

Roll Resistance = 1.5 x 20 lb/ton = 30 lb/ton,

Grade Assistance = -2 x 20 lb/ton = -40 lb/ton

Total Resistance = -10 lb/ton

22,260
Truck empty weight = 22,260 kg   24.486ton (for return speed)
909.09

Engine horse power 375  301

Return Speed    1.61  741.87 km hr
Total Resisance  Empty vehicle weight  10  24.486
The speed will be in negative so use maximum road legal speed is 90km/hr

Return Distance 4
Return time =  x 60 = 2.667 min
Return Speed 90

STEP 5: DUMP TIME

*Type of hauling unit and Congestion in the dump area

Total dump time averages about 2 minutes. Use 2.0 minutes

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STEP 6: TRUCK CYCLE TIME

8 buckets 9 buckets

Load time (min.) 3.067 3.450

Haul time (min.) 4.323 4.438

Dump time (min.) 2.000 2.000

Return time (min.) 2.667 2.667

Truck cycle time(min.) 12.056 12.548

STEP 7: NUMBER OF TRUCKS

8 buckets
Truck cycle time 12.0567
Number of trucks =  = 3.931
Load Cycle time 3.06

9 buckets

Truck cycle time 12.5478

Number of trucks =  = 3.637
Load Cycle time 3.45

Must be an integer number therefore 4 trucks

STEP 8: PRODUCTION

 For 8 buckets

3 trucks

Load volume x no. of trucks x 60 13.68  3  60

Production    204.235 LCM hr
truck cycle time 12.056

4 trucks
Load volume x 60 13.68  60
Production    267.62 LCM hr
Load time 3.067

5trucks
Load volume x 60 13.68  60
Production    267.62 LCM hr
Load time 3.067

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 For 9 buckets

3 trucks

Load volume x no. of trucks x 60 14.40  3  60

Production    206.57 LCM hr
truck cycle time 12.548

4 trucks

Load volume x 60 14.40  60

Production    250.43 LCM hr
Load time 3.45

5 trucks

Load volume x 60 14.40  60

Production    250.43 LCM hr
Load time 3.45

Truck available 8 buckets (LCM/hr) 9 buckets (LCM/hr)

3 204.235 206.570

4 267.620 250.430

5 267.620 250.430

Choose maximum production = 267.62 LCM/hr

Actual production = 267.62 x 0.83 x 0.95 = 211.02 LCM/hr

At Number of trucks are 4 trucks

Number of buckets per truck = 8 buckets

Haul speed (1st road segment) = 55.52 km/hr

Return speed (last road segment) = 90 km/hr

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EXAMPLE 4

Given: its Caterpillar 772 Articulated Truck

Truck Net power = 535hp

Truck Net empty weight = 35,454 kg

Truck Payload = 45,000 kg

Truck heaped capacity = 31.3 m3

Excavator heaped capacity = 2.8 m3

Haul road type: 1 Km smooth roadway 1% grade (rolling resistance (RR) = 1.5%) + 2 Km

dirt roadway 1% grade (RR = 4%) + 2 Km sand -4% grade (RR = 10%) (Table 4.5), with 90

Km/hr legal speed. Haul material type = dry gravel (loose material weight = 1690 kg/m 3,

bucket fill factor = 95%, excavator cycle time = 23 seconds and load factor = 0.89)

(Table 4.4). Job efficiency = 50 minutes per hour = 0.83. Operators are good = 0.95

Estimate the earthmoving productivity

SOLUTION

STEP1: BUCKET LOADS

Number of bucket loads required to fill the truck

Truck heaped capacity
Balanced number of buckets =
Excavator heaped capacity  bucket fill factor

31.3
Number of buckets  = 11.77
2.8 x 0.95

The actual number of buckets must be an integer numbers we have 11 or 12

buckets

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STEP 2: LOAD TIME

11 buckets

Number of buckets  excavator cycle time 11 x 23

Load time =  = 4.217 min
60 60

Load volume  Number of buckets  Excavator heaped capacity  Bucket fill factor

= 11 x 2.8 x 0.95 = 29.26 m3  (Truck heaped capacity  31.3 m3 ) OK !

Load weight = Load volume  loose material weight  29.26 x 1690

= 49,449.4 kg > payload NOT OK !

Use 10 buckets

Number of buckets  excavator cycle time 10 x 23

Load time =  = 3.83 min
60 60

Load volume  Number of buckets  Excavator heaped capacity  Bucket fill factor

= 10 x 2.8 x 0.95 = 26.6 m3 < 31.3 m3 Ok

Load weight = Load volume  loose material weight  26.6 x 1690

= 44,954 kg  payload OK !

STEP 3: HAUL TIME

10 buckets

ROAD 1:

RR (1.5%) = 1.5 x 20 lb/ton = 30 lb/ton,

GR (+1%) = 1 x 20 lb/ton = +20 lb/ton

TR = 50 lb/ton

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Engine horse power = 535hp

35454 + 44954
Weight fully loaded = = 88.45lton
909.09

375 x 535
Speed = x 1.61 = 73.037 km/hr
88.45  50

1 x 60
Haul time = = 0.82 min
73.037

ROAD 2:

RR (4%) = 4 x 20 lb/ton = 80 lb/ton,

GR (+1%) = 1 x 20 lb/ton = +20 lb/ton

TR = 100 lb/ton

Engine horsepower = 535hp,

35454 + 44954
Weight fully loaded = = 88.45 lton
909.09

375 x 535
Speed = x 1.61 = 36.52 km/hr
88.45  100

2 x 60
Haul time = = 3.286 min
36.52

ROAD 3:

RR (10%) = 10 x 20 lb/ton = 200 lb/ton

GR (-4%) = -4 x 20 lb/ton = -80 lb/ton

TR = 120 lb/ton

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Engine horsepower = 535hp

35454 + 44954
Weight fully loaded = = 88.45 lton
909.09

375 x 535
Speed = x 1.61 = 30.43 km/hr
88.45  120

2 x 60
Haul time = = 3.943 min
30.43

Total haul time = 0.82 + 3.286 + 3.943 = 8.049 min.

STEP 4: RETURN TIME:

ROAD 3:

RR ( 1.5% = 1.5 x 20 lb/ton = 30 lb/ton,

GR (-1%) = -1 x 20 lb/ton = -20 lb/ton

TR = 10 lb/ton

Engine horsepower = 535hp,

35454
Weight empty = = 39 lton
909.09

375 x 535
Speed = x 1.61 - ve speed use 90 km/hr
39  10

1x 60
Return time = = 0.67 min
90

ROAD 2:

RR (4%) = 4 x 20 lb/ton = 80 lb/ton,

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GR ( -1% )= -1 x 20 lb/ton = -20 lb/ton

TR = 60 lb/ton

Engine horsepower = 535hp,

35454
Weight empty = = 39 lton
909.09

375 x 535
Speed = x 1.61 > legal speed use 90 km/hr
39  60

2 x 60
Return time = = 1.33 min
90

ROAD 1:

RR (10%) = 10 x 20 lb/ton = 200 lb/ton,

GR ( +4% )= 4 x 20 lb/ton = 80 lb/ton

TR = 280lb/ton

Engine horsepower = 535hp

35454
Weight empty = = 39 lton
909.09
375 x 535
Speed = x 1.61 = 29.58 km/hr
39  280
2 x 60
Return time = = 4.057 min
29.58

Total return time = 0.67 + 1.33 + 4.057 = 6.057 min

STEP 5: DUMP TIME

Rear dumps must be spotted before dumping. Total dump time can exceed 2 minutes.

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STEP 6: TRUCK CYCLE TIME:

10 buckets

Load time (min.) 3.83

Haul time (min.) 8.049

Dump time (min.) 2

Return time (min.) 6.057

Truck cycle time (min.) 19.936

STEP 7: NUMBER OF TRUCKS:

10 buckets

No. of trucks = 19.936 / 3.83 = 5.2

STEP 8: PRODUCTION:

10 buckets

5 trucks 6 trucks

Load volume x no. of trucks x 60 Load volume x 60

truck cycle time load time

400.28 LCM/hr 416.71 LCM/hr

Choose maximum production = 416.71 LCM/hr

Actual production = 416.71 x 0.83 x 0.95 = 328.57 LCM/hr

Number of trucks = 6 trucks

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Number of buckets per truck = 10 buckets

Haul speed (1st road segment) = 73.037 km/hr

Return speed (last road segment) = 90 km/hr

Five key principles to minimize the power costs of construction equipments

1. Take advantage of gravity flow or downgrade travel in moving heavy weights

2. Plan for straight line, constant speed movement to minimize the power required

to overcome inertia forces

3. Minimize the height material must be lifted

4. Minimize turns or changes of direction for equipment to minimize power

required to oppose centrifugal forces

5. Minimize starts and stops of equipment, particularly loaded equipment to

minimize power required to overcome inertia

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Example 5:

The Acme Company, On January 2, 2012, purchased equipment to be used in

construction. The expenditures made to acquire the assent were as follow:

The purchase price is $39,500, Freight Charges is $2,000 and Installation charges is

$3,500, which it believes will have $700 estimated residual value at the end of its 5-

year life. Compute the depreciation schedule for the equipment by each of the following

methods:

a) Straight-line depreciation

b) Sum-of-years’-digits depreciation

c) Double declining balance with optimal switch to straight-line depreciation

d) In which year, annual depreciation amount by sum-of-years-digits method will

be equal to the annual depreciation by straight line method for the above available

information?

Solution

a) Straight line depreciation

𝒊𝒏𝒊𝒕𝒊𝒂𝒍 𝒄𝒐𝒔𝒕 − 𝒔𝒂𝒍𝒗𝒂𝒈𝒆 𝟒𝟓𝟎𝟎𝟎 − 𝟎
𝑫𝒕 = = = 𝟗, 𝟎𝟎𝟎
𝒏 𝟓
Book value at end of year
𝐈−𝐒
𝐁𝐕𝐭 = 𝐈 − 𝐭( )
𝐧
where, I = inital cost, S = salvage value, t = end of year, n = useful life of asset

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Year Opening Book value Depreciation Closed Book value

0 45,000
1 45,000 8,860 36,1400
8,860
2 36,140 27,280

8,860
3 27,280 18,420

8,860
4 18,420 9,560

8,860
5 9,560 700

Switch to straight
𝐁𝐕𝐭 − 𝐒 𝟑𝟔, 𝟎𝟎𝟎 − 𝟎
= = 𝟗, 𝟎𝟎𝟎
𝐧−𝐭+𝟏 𝟒

𝐁𝐕𝐭 − 𝐒 𝟐𝟕, 𝟎𝟎𝟎 − 𝟎

= = 𝟗, 𝟎𝟎𝟎
𝐧−𝐭+𝟏 𝟑

b) Sum-of-years-digits depreciation

n(n+1) 5(6)
SOD = = = 15
2 2

Depreciation for year t

𝐧+𝟏−𝐭
𝐃𝐭 = 𝐢𝐧𝐢𝐭𝐢𝐚𝐥 𝐂𝐨𝐬𝐭 − 𝐒𝐚𝐥𝐯𝐚𝐠𝐞 𝐯𝐚𝐥𝐮𝐞 ∗ 𝐧
𝐢=𝟏 𝐘𝐢

Depreciation of nth year

(𝟒𝟓𝟎𝟎𝟎 − 700)(𝟓 + 𝟏 − 𝟏)
𝑫𝟏 = = 15,767
𝟏𝟓
(𝟒𝟓𝟎𝟎𝟎 − 700)(𝟓 + 𝟏 − 𝟐)
𝑫𝟐 = = 11,813
𝟏𝟓
(𝟒𝟓𝟎𝟎𝟎 − 700)(𝟓 + 𝟏 − 𝟑)
𝑫𝟑 = = 8,860
𝟏𝟓
(𝟒𝟓𝟎𝟎𝟎 − 700)(𝟓 + 𝟏 − 𝟒)
𝑫𝟒 = = 5,907
𝟏𝟓
(𝟒𝟓𝟎𝟎𝟎 − 700)(𝟓 + 𝟏 − 𝟓)
𝑫𝟓 = = 2,953
𝟏𝟓

REFISA JIRU 27
 Hawassa University IOT

Years Beginning Book Depreciation Closed Book

Value value

0 0 0 45,000

1 45,000 15,767 29,233

2 29,233 11,813 17,420

3 17,420 8,860 8,560

4 8,560 3,930 4,630

5 4,630 3,930 700

When Book value greater than Salvage value, we are faced with a situation in which we have not
depreciated the entire cost of the asset at 4th year, hence switch to straight line

c) Double decline balance method

Depreciation values at year t

𝟐 𝟐
𝐃𝐭 = 𝐈𝐧𝐢𝐭𝐢𝐚𝐥 𝐜𝐨𝐬𝐭 ∗ (𝟏 − )𝐭−𝟏
𝐧 𝐧

𝟐 𝟐
𝑫𝟏 = 𝟒𝟓𝟎𝟎𝟎 ∗ (𝟏 − )𝟏−𝟏 = 𝟏𝟖, 𝟎𝟎𝟎
𝟓 𝟓

𝟐 𝟐
𝑫𝟐 = 𝟒𝟓𝟎𝟎𝟎 ∗ (𝟏 − )𝟐−𝟏 = 𝟏𝟎, 𝟖𝟎𝟎
𝟓 𝟓

𝟐 𝟐
𝑫𝟑 = 𝟒𝟓𝟎𝟎𝟎 ∗ (𝟏 − )𝟑−𝟏 = 𝟔, 𝟒𝟖𝟎
𝟓 𝟓

𝟐 𝟐
𝑫𝟒 = 𝟒𝟓𝟎𝟎𝟎 ∗ (𝟏 − )𝟒−𝟏 = 𝟑, 𝟖𝟖𝟖
𝟓 𝟓

𝟐 𝟐
𝑫𝟓 = 𝟒𝟓𝟎𝟎𝟎 ∗ (𝟏 − )𝟓−𝟏 = 𝟐, 𝟑𝟑𝟑
𝟓 𝟓

REFISA JIRU 28
 Hawassa University IOT

Book value at end of year n

𝟐
𝐁𝐕𝐭 = 𝐂𝐨𝐬𝐭 ∗ (𝟏 − )𝐭
𝐧
Years Beginning Book Depreciation Closed Book Straight line depreciation

Value value

0 0 0 45,000

1 45,000 18,000 27,000 (𝟒𝟓, 𝟎𝟎𝟎 − 𝟕𝟎𝟎)

= 𝟖, 𝟖𝟔𝟎 < 𝟏𝟖, 𝟎𝟎𝟎
𝟓
2 27,000 10,800 16,200 (𝟐𝟕, 𝟎𝟎𝟎 − 𝟕𝟎𝟎)
= 𝟔, 𝟓𝟕𝟓 < 10,800
𝟒
3 16,200 6,480 9,720 (𝟏𝟔, 𝟐𝟎𝟎 − 𝟕𝟎𝟎)
= 𝟓, 𝟏𝟔𝟕 < 6,480
𝟑
4 9,720 3,888 5,832 (𝟗, 𝟕𝟐𝟎 − 𝟕𝟎𝟎)
∗ = 𝟒, 𝟓𝟏𝟎 > 3,888
𝟐
5 5,832 2,333 3,499 (𝟑, 𝟒𝟗𝟗 − 𝟕𝟎𝟎)
= 𝟐, 𝟕𝟗𝟗 > 𝟐, 𝟑𝟑𝟑
𝟏
When Book value greater than Salvage value, we are faced with a situation in which we

have not depreciated the entire cost of the asset.

**Switch to straight line depreciation when amount of depreciation generated by

straight line is greater than that of double decline **

Years Beginning Book Depreciation Closed Book

Value value

0 0 0 45,000

1 45,000 18,000 27,000

2 27,000 10,800 16,200

3 16,200 6,480 9,720

4 9,720 4,510 4,860

5 4,860 4,510 700

Hence, the switchover occurs in the year in which an equal or a larger depreciation

amount is obtained from the SL method at 4 th years

REFISA JIRU 29
 Hawassa University IOT

d) Annual depreciation cost, by Sum-of-the-Years Digits Method is (dt)

dt 
I  Sn  t  1
n(n  1) 2
Annual depreciation cost, by straight line method

dt 
I  S
n

Equate both
n 1
t
2

Hence n=years
5  1
t  3years
2

Therefore; 3rd years depreciation calculated by both methods will be equal.

REFISA JIRU 30