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Straight Line Depreciation

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In straight line depreciation, the depreciation is spread evenly over the useful life of an asset, it is the most common method of depreciation. Using this method the depreciation expense for a given year would be: (cost of acquisition - residual value)/ useful life.


Suppose a truck was bought for $30,000, and it has an useful life of 8 years and a residual value of $5,000. The depreciation expense each year would be of $3,125

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