Calculate asset value reduction using the Straight Line Method (SLM). View yearly depreciation schedules and asset values.
The Straight Line Method (SLM) is the simplest and most commonly used method to calculate the depreciation of a fixed asset. Under this method, the same amount of depreciation expense is written off in each year of the asset’s useful life until it reaches its salvage value.
Annual Depreciation = (Cost of Asset − Salvage Value) ÷ Useful Life Years
Where:
Cost of Asset = Initial purchase price of the asset
Salvage Value = Estimated resale value of the asset at the end of its useful life
SLM is popular because of its simplicity and consistency. It is ideal for assets whose utility reduces uniformly over time, such as furniture, office buildings, and simple shop equipment.
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