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View Full Version : How to calculate a depreciated straight line


Tisha0925
Mar 25, 2009, 06:19 PM
I do not know how to calculate a two a 410000 depreciated straight line with a four year life and a salvage value of zero

ROLCAM
Mar 25, 2009, 08:17 PM
This would be an easy journal entry:-

Depreciation Account 102,500
Provision for Depreciation of Asset 102,500

Being Depreciation calculation for the first year on the equipment.

Note: - you would need to repeat this entry for the next three years.

aas
Apr 15, 2009, 11:37 AM
in SLM you could calculate depreciation by using this formula:
Dep = (Assets Value - Salvage Value)/life time
Dep = (410000 - 0)/4 = 102500 annually

ROLCAM
Apr 15, 2009, 05:34 PM
We certainly agree, which is a good thing.

Roland.

morgaine300
Apr 16, 2009, 12:30 AM
Provision for Depreciation of Asset 102,500



Known in the U.S. as Accumulated Depreciation.

I'm certainly glad we have you two to do people's homework for them.