How to work out straight line depreciation
Straight line depreciation charges the same amount every year. Work it out from cost, residual value and useful life.
Task 1The same charge every year4 questions
The straight line method charges the same amount in every year of the asset's useful life.
Yearly charge = cost less residual value, divided by the useful life in years.
| Detail | Figure |
|---|---|
| Cost | 18,000.00 |
| Residual value | 2,000.00 |
| Useful life | 8 years |
Task 2Straight line as a percentage of cost4 questions
Task 3The end of the useful life2 questions