Monday, December 22, 2008

Straight-Line Depreciation Expense Example

Depreciation is the process of computing expense from allocating the cost of plant and equipment over their expected useful. Use the following example to calculate depreciation expense.

Straight-Line Depreciation Expense Method:

Straight-Line depreciation Expense = (Asset Cost- Salvage Value)/ Useful Life

Additional Links:

Accumulated Depreciation Balance Sheet
Depreciation of an Asset and Book Value

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