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Straight Line Depreciation

Categories:
Accounting
| Contributor:
Valentina
Tags:

Definition

In straight line depreciation, the depreciation is spread evenly over the useful life of an asset, it is the most common method of depreciation. Using this method the depreciation expense for a given year would be: (cost of acquisition - residual value)/ useful life.

Example

Suppose a truck was bought for $30,000, and it has an useful life of 8 years and a residual value of $5,000. The depreciation expense each year would be of $3,125

Source and advanced materials

https://www.double-entry-bookkeeping.com/depreciation/depreciation-expense/

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