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    Tisha0925's Avatar
    Tisha0925 Posts: 1, Reputation: 1
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    #1

    Mar 25, 2009, 06:19 PM
    how to calculate a depreciated straight line
    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's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    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's Avatar
    aas Posts: 13, Reputation: 1
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    #3

    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's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #4

    Apr 15, 2009, 05:34 PM

    We certainly agree, which is a good thing.

    Roland.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #5

    Apr 16, 2009, 12:30 AM
    Quote Originally Posted by ROLCAM View Post
    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.

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