Let’s say Standard Manufacturing owns a large machine that they purchased for $270,000. The machine has a useful life of four years and is depreciated using the double-declining balance method. As the asset was available for the whole period, the annual depreciation expense is not apportioned. The straight-line method of depreciation can be used to …
Straight-Line Method of Depreciation Definition & How It Works Read More »
Straight-line depreciation is a method of allocating the cost of a tangible fixed asset evenly over its useful life. This means that the asset’s value is reduced by the same amount each accounting period until it reaches its salvage value, or the estimated residual value at the end of its useful life. Straight-line depreciation is …
What Is Straight-Line Depreciation? Formula & Example Read More »
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