BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Straight-line depreciation spreads the cost of an asset evenly over the time it will be used, also known as its “useful life.” It requires only three inputs to calculate: asset cost, useful life and estimated salvage value-meaning, how much the asset is likely to be worth at the end of its useful life.

Detailed explanation-2: -Noncurrent assets can be depreciated using the straight-line depreciation method, which subtracts the asset’s salvage value from its cost basis and divides it by the total number of years in its useful life. Thus, the depreciation expense under the straight-line basis is effectively the same for every year it is used.

Detailed explanation-3: -noun. : a method of calculating periodic depreciation that involves subtraction of the scrap value from the cost of a depreciable asset and division of the resultant figure by the anticipated number of periods of useful life of the asset compare compound-interest method.

Detailed explanation-4: -Straight line depreciation is properly used when an asset’s value declines evenly over time. This would often be a piece of machinery that you expect to use until you scrap it.