Book Value Straight Line Depreciation
Annual depreciation 2000 500 5 years 1 500 5 years 300.
Book value straight line depreciation. Now click on book value under depreciation the screenshot below displays the page or activity to enter your values to get the answer for the book value according to the respective parameters which are the present amount or worth p salvage value s total estimated life of the asset n and number of years of the asset t. Now all assets are purchased because they represent future benefits. In this case the machine has a straight line depreciation rate of 16 000 80 000 20.
The most common method for computing depreciation for financial reporting purposes is the straight line method. The depreciation rate is the annual depreciation amount total depreciable cost. According to straight line depreciation your macbook will depreciate 300 every year.