Straight Line Depreciation

Accounting Dictionary

Straight Line Depreciation

Straight line depreciation is a cost expiration method that is used for fixed assets that lose value evenly throughout the years.

Let’s say a wooden table costs $5,000 and is expected to last 10 years. $5,000 divided by 10 = $500. Every year would we deduct $500 of depreciation cost for the table.

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