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Straight Line Depreciation Example. Straight line depreciation is a common method of depreciation where the value of a fixed asset is reduced gradually over its useful life. What Is an Example of Straight Line Depreciation?

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Let's use the following situation as an example. Straight-line depreciation is the simplest accounting method used to calculate depreciation expense. The Excel equivalent function for Straight-Line Method is SLN(cost,salvage,life) will calculate the depreciation expense for any period.

The same amount is depreciated each year that the Furniture straight line depreciation example.

It is used for bookkeeping purposes to Straight line depreciation spreads the cost of an item evenly over its useful life.

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8 depreciation

Straight line method is also known as fixed installment method and original cost method. This method is very simple and conceptually appropriate to employ. Straight line depreciation is the default method used to recognize the carrying amount of a fixed asset evenly over its useful life.

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