The straight-line method is besides called the fixed percent method of the buy cost of the asset. Based on the straight-line method the total of depreciation expense annually is fixed which is defined past times the next formula:
Formula of Straight Line Depreciation Method
The total of depreciation r is defined past times the formula:
Information :
A = Cost of assets is the total of costs incurred past times the companionship to begin an activation until the property is ready to last operated.
S = Estimated balance value of the property is the value of the appraisal that may last obtained through the assets that bring passed its life.
r = Depreciation charge per unit of measurement or percent depreciation
n = Age of create goodness / Age of economical assets inwards the year.
D = Depreciation expense for each period
Example Question of Straight Line Depreciation Method
Answer:
A = $5,000,000
S = $2,000,000
n = half dozen years
So the total of depreciation each twelvemonth is $600,000 .
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Referensi :
- To'Ali's mass math grouping accounting too sales