Formula for straight line depreciation is as follows:
Depreciation = (Cost of asset - salvage value) / useful life of asset
A linear relationship means that the slope of the line is proportional, which means that the line is straight. In contrast to the linear realtionship, the non-linear relationship's slope is not proportional and the line will curved and not straight. Formula of calculating the slope is the difference of y divided by the difference of x.
Y=mX+b
(y2 - y1) / (x2 - x1)
The standard expression for a straight line graph is y = ax + b
It is the formula for a straight line with a slope of 3.6.
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.
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 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 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
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.
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
The main difference between straight line depreciation and double declining depreciation methods is the way they allocate the cost of an asset over its useful life. Straight line depreciation spreads the cost evenly over the asset's life, while double declining depreciation front-loads the depreciation expense, resulting in higher depreciation in the early years and lower depreciation in later years.
The IRS rules the acceptable depreciation methods to be used by companies, in a way such depreciation may be considered a deductible expense, what ultimately lowers the profit and consequently the tax payable. Political measures to improve economics, lobby etc. may demand additional benefits and raising the IRS acceptable amount of depreciation is one of them. The simplest depreciation method is the straight line, which presumes an evenly depreciation of a fixed asset over the time. The easiest way to modify it comes by accelerating (increasing the amount of deductible) depreciation. That´s what it is. For more details, there is a precise text - weblinked below - that explain most of the latest modifications in the straight line method, despite of too accounting wording. : is there any fixed rule for increasing the rate of depreciation? : it is not clearly mentioned in the link provided
straight line method
Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method.
Straight line
the straight line method