Straight Line
Yearly Straight Line depreciation is calculated using the following formula:
NBV x (Number of Periods to Depreciate / Remaining Life)
Straight Line Depreciation Example
The following table shows data that is used in the depreciation example that follows.
| Attributes | Data |
|---|---|
|
Asset Cost |
11,000.00 USD |
|
Salvage Value |
1,000.00 USD |
|
Asset Basis |
10,000.00 USD (Cost - Salvage Value) |
|
Life |
60 periods (5 years) |
|
Begin Depr Dt. |
07/01/2006 |
Depreciation Results
The following table shows yearly depreciation and the calculation that is used to produce the result.
| Year | Depreciation Calculation | Depreciation Expense |
|---|---|---|
|
2006 |
10,000 x (6/60) |
= 1000.00 |
|
2007 |
9000 x (12/54) |
= 2000.00 |
|
2008 |
7000 x (12/42) |
= 2000.00 |
|
2009 |
5000 x (12/30) |
= 2000.00 |
|
2010 |
3000 x (12/18) |
= 2000.00 |
|
2011 |
1000 x (6/6) |
= 1000.00 |