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Formula for straight line depreciation is as follows:

Depreciation = (Cost of asset - salvage value) / useful life of asset

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Q: Formula for calculating straight line depreciation?
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Related questions

What is the formula for a straight line depreciation method?

The formula for a straight line depreciation method is the Cost minus the Salvage Value over the Life in Number of Periods which will equal Depreciation.


What is srtaight line method?

Straight line method of depreciation is that under which any asset is depreciated in equal amount for every year till salvage value. Formula for straight line method: Depreciation = (Cost price - Salvage Value)/Number of years


Depreciation straight line method?

Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.


Straight line method of depreciation?

Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.


What does straight line depreciation over 5 years to a residual cost of 20 percent mean?

It means that, over a 5 year period, the value of the asset falls by 80 per cent (100 - 20 = 80). This is STRAIGHT line so that every year the depreciation 16% of the price at the start of the whole PERIOD. In calculating depreciation in the normal way, the depreciation each year is a percentage of the price at the start of that YEAR.


How many methods of calculating depreciation?

Following are different methods of depreciation: 1 - Straight line method 2 - Diminishing balance method 3 - Double declining method 4 - Sum of years method 5 - MACRS


What is MODIFIED straight line method for calculating depreciation?

The modified straight-line method for calculating depreciation is a variation of the straight-line method where the depreciation expense is accelerated in the early years and then slows down in the later years. This method takes into account the salvage value of the asset and spreads the depreciation expense more evenly over the useful life of the asset. It is often used when the asset's cost declines more rapidly in the early years of its useful life.


What is the fastest depreciation method?

straight line method


Accelerated depreciation method?

Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method.


Which type of depreciation method accelerates depreciation in the early years of an asset life?

Straight line


What depreciation method does wal-mart use?

Straight line


What depreciation method does target use?

the straight line method