Example of Straight-line Depreciation


 
Depreciation > Forum Log in

Example of Straight-line Depreciation
Junaid, Pakistan
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, Financial Consultant, Afghanistan
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
Summary
Forum
Best Practices

Expert Tips

Resources

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 21-9-2017. All names tm by their owners.