Straight Line Depreciation Method

by Geethalakshmi 2010-08-20 12:26:34

Straight Line Depreciation Method

Straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years the asset can be reasonably expected to benefit the company (called "useful life" in accounting jargon).

Straight Line Depreciation Calculation
(Purchase Price of Asset - Approximate Salvage Value) ÷ Estimated Useful Life of Asset

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