Example of Straight-line Depreciation

Depreciation > Forum Log in

Example of Straight-line Depreciation
Please tell me about the depreciation schedule using straight line method. Please explain with the schedule so i could learn easily from your answer. Thank you

Straight Line Depreciation Method
Zubair Sadat, Member
Dear Junaid,
Please refer to below the straight line depreciation method and schedule.

On April 1, 2011, company XYZ has purchased an equipment at the cost of $140,000.
The equipment is estimated to have 5 years useful life.
At the end of the 5th year the salvage value (residual value) will be $20,000.
Company XYZ recognizes depreciation to the nearest whole month.
Calculate the depreciation expenses for 2011, 2012 and 2013 using the straight line depreciation method.
Depreciation for 2011
= ($140,000 - $20,000) x 1/5 x 9/12 = $18,000
Depreciation for 2012
= ($140,000 - $20,000) x 1/5 x 12/12 = $24,000
Depreciation for 2013
= ($140,000 - $20,000) x 1/5 x 12/12 = $24,000
If you have any questions, please contact me
Best of luck!



  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on Depreciation
Best Practices

Expert Tips


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 19-9-2018. All names of their owners.