How to Calculate Depreciation Using Excel. Two common ways of calculating depreciation are the straight-line and double declining balance methods. Excel can accomplish both using the SLN function ...

The depreciation method your company uses doesn't change the fact that at the beginning of the project, you're going to need $15,000 for the equipment. That's a negative cash flow, even though it ...

Straight line basis is a method of calculating depreciation and amortization, the process of expensing an asset over a longer period of time. It is calculated by dividing the difference between an ...

The straight-line method can be applied to most assets. If there isn’t a specific trend to the asset’s use, straight-line depreciation is applied. Double-Declining Balance This method is used when the ...

Under the double-declining balance method, the book value of the trailer after three years would be $51,200 and the gain on a sale at $80,000 would be $28,800, recorded on the income statement ...

The straight-line depreciation method is the easiest to use, so it makes for simplified accounting calculations. On the other hand, the declining balance method often provides a more accurate ...

The straight-line depreciation method simply subtracts the salvage value from the cost of the asset and this is then divided by the useful life of the asset. The annual straight-line depreciation ...

Linear depreciation—like any method of expending an asset—is subject to assumptions. However, calculated responsibly, these assumptions can be accurate and reliable. As part of a straight-line ...

(See Figure 2 below for the difference in depreciation between straight-line and double-declining depreciations on $100,000.) Under the double-declining balance method, the book value of the trailer ...