Community App - Mobile Application

While the cost of a new item is usually given, the resale value of that item is often unknown. Pricing of resale items varies tremendously, often resulting in serious losses to the seller if the item is underpriced or to the buyer if the item is overpriced. To avoid this, an accurate understanding of depreciation is necessary. An asset’s value declines over time due to use, wear and tear, and obsolescence. Known as depreciation, this decline is systematic: the net value of an item is adjusted periodically. A used item’s net value, therefore, is the original purchase price less the accumulated reduction of value. Understanding this helps individuals or companies to manage the cost of assets and accurately estimate their book value at the end of each year of their useful life. Unfortunately, most individuals and companies lack the detailed knowledge necessary to accurately calculate depreciation. The objective of this study is to develop an application to accurately and rapidly determine the fair price of tangible assets using the sum of the year’s digit depreciation method. The application will help individuals and companies to evaluate used items, whether for purchase or for sale, cost-effectively, accurately, and rapidly.