Method 01, Straight Line Depreciation

The system depreciates the asset's cost (less salvage value) in equal amounts or daily (days in period/365.25) over the estimated useful life (life periods) of the asset, depending on the compute direction.

When you use the straight-line depreciation method, you can designate a mid-month, mid-quarter, or mid-year averaging convention. If you do not designate a convention, the system depreciates the full month for the period that you place the asset in service.

When you use straight-line depreciation, you must indicate one of these computation methods:

Computation Method	Description
Inception-to-date (I) (daily depreciation)	(((Cost - (Salvage Value)) / (life months)) * (elapsed months)) - (accumulated depreciation) = (period depreciation) For example, depreciation for January 1997 is calculated as follows: (((100,000.00 - 0) / 60) * 6) - 8,333.00 = 1,667.00
Remaining life (R) (daily depreciation)	((((Net book value) - salvage) / (Remaining life periods))* (months elapsed year-to-date)) - (year-to-date depreciation) = (period depreciation) For example, depreciation for January 1997 is calculated as follows: (((91,667.00 - 0) / 55) * 1) - 0 = 1,667.00 These rules apply to this calculation: The cost less accumulated depreciation for prior years equals the net book value (NBV). If the NBV less salvage value is greater than zero, it is divided by the remaining life months as of the beginning of the current fiscal year.
Current period (P) (equal amounts depreciation)	(Adjusted cost) / (life months) = (period depreciation) For example, depreciation for January 1997 is calculated as follows: (100,000.00 - 0) / 60 = 1,667.00

Computation Method

Description

Inception-to-date (I) (daily depreciation)

(((Cost - (Salvage Value)) / (life months)) * (elapsed months)) - (accumulated depreciation) = (period depreciation)

For example, depreciation for January 1997 is calculated as follows:

(((100,000.00 - 0) / 60) * 6) - 8,333.00 = 1,667.00

Remaining life (R) (daily depreciation)

((((Net book value) - salvage) / (Remaining life periods))* (months elapsed year-to-date)) - (year-to-date depreciation) = (period depreciation)

For example, depreciation for January 1997 is calculated as follows:

(((91,667.00 - 0) / 55) * 1) - 0 = 1,667.00

These rules apply to this calculation:

The cost less accumulated depreciation for prior years equals the net book value (NBV).
If the NBV less salvage value is greater than zero, it is divided by the remaining life months as of the beginning of the current fiscal year.

Current period (P) (equal amounts depreciation)

(Adjusted cost) / (life months) = (period depreciation)

For example, depreciation for January 1997 is calculated as follows:

(100,000.00 - 0) / 60 = 1,667.00