Wednesday, October 28, 2015

Straight Line Depreciation Formula

Different depreciation methods are being calculated based on different algorithms. 
Examples - Straight line depreciation: 
a) based on depreciation period 
Depreciation Amount = ((Book value - Salvage Value) * Number of Depreciation Days) / Remaining Depreciation Days
b) based on fixed yearly percentage 
Depreciation Amount = (Straight-Line % * Depreciable Basis * Number of Depr. Days) / (100 * 360)
c) based on fixed yearly amount
Depreciation Amount =(Fixed Depreciation Amount * Number of Depreciation Days) / 360

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