For example, due to rapidtechnological advancements, a straight line depreciation method may not be suitable for an asset such as a computer. A computer would face larger depreciation expenses in its early useful life and smaller depreciation expenses in the later periods of its useful life, due ...
One method is straight-line depreciation, where the monetary loss of value of a particular item is calculated over a specific period of time. The graph above is an example of straight-line depreciation. Straight-Line Depreciation Formula Straight-line depreciation, also known as straight-line ...
直线折旧法（Straight-line Depreciation Method）什么是直线折旧法？ 直线折旧法是指将资产原值扣除净残值后，在预计使⽤年限内平均摊销。年折旧费为购置成本扣除残值后，再除以预计使⽤年限。直线折旧法的计算公式 每年折旧费=（成本－残值）/估计有效使⽤年限 直线折旧法举例 下⾯举例说明⼀台...
Of the three methods discussed, we shall closely go through the Straight-line depreciation method in the following sections. What is Straight Line Depreciation? As seen in the previous section, the straight-line depreciation method depreciates the value of an asset gradually, and linearly, over th...
In the straight-line depreciation method, the cost of a fixed asset is reduced equally in each period of its useful life till it reaches its residual value.If we plot the depreciation expense under the straight-line method against time, we will get a straight line. Depending on the ...
SLN is an Excel function that calculates the depreciation expense to be charged on an asset under the straight line depreciation method. As the name suggest, straight-line method charges depreciation equally over the useful life of the asset.
Example #1 ABC Inc. purchased a boiler plant for Rs.800000. The plant’s useful life is 10 years. The plant can be sold at Rs.50000 at the end of 10 years. Calculate the depreciation to be charged each year using the Straight Line Method. ...
This process is called depreciation. The building always remains on the balance sheet and is never expensed.The straight line depreciation method is the simplest form of depreciation because it allocates an equal amount of costs for each accounting period in the asset’s useful life. The straight...
Straight-Line Depreciation A common method of reducing the cost, or purchase price, of assets is straight-line depreciation. This process reduces the cost of an asset by an equal amount each year over the estimated useful life of the asset, typically a number of years. Straight-line depreciati...
Equal intervalsare the key to straight-line depreciation. Every year, you write down thesame amount of depreciationas an expense on your tax return, and this is done for a preset number of years. As explained above, the number of years varies based on the type of asset, and how long it...