Straight Line Depreciation Method Example

The video tutorial introduces the easy method of calculating depreciation, known as the straight line method. This method involves a single calculation that applies the same depreciation expense each year. The formula used is total asset cost minus salvage value, divided by the useful life of the asset. The tutorial explains how this method simplifies the process by requiring only one calculation for consistent annual depreciation. An example of applying this formula is promised in the next video.

Why is the straight line method considered easy?

What is the straight line method of depreciation?

How does the straight line method affect the depreciation expense over the years?

What is the formula for calculating depreciation expense using the straight line method?

What will the next video demonstrate regarding the straight line method?