straight-line depreciation

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Straight-line depreciation

Amortizing or apportioning an equal dollar amount of depreciation in each accounting period.

Straight-Line Depreciation

A system of depreciation in which one deducts the same amount every year. For example, suppose an asset costs $1,200 with a usable life of three years and a salvage value of $300. If one uses straight-line depreciation, one deducts $300 each year.

straight-line depreciation

A method of recording depreciation such that the original cost minus the estimated salvage value of an asset is written off in equal amounts during each period of the asset's life. For example, a machine costing $10,000 with an estimated life of five years and no salvage value would be depreciated $2,000 ( $10,000/5 ) annually, using straight-line depreciation. If the machine had an estimated salvage value of $4,000, annual straight-line depreciation would amount to $1,200. Compare accelerated depreciation.

straight-line depreciation

A method of accounting for the gradual loss in value of an asset over time by predicting that the asset's value will decline in equal amounts each year over a specified number of years.The method is also used for tax purposes as an expense allowed each year for the supposed loss in value of an asset,even though it might actually be increasing in value.See depreciation.

Straight-Line Depreciation

A method of computing depreciation under which the depreciation deduction is the same for each full year.
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If the company realizes tax advantages from using straight line depreciation purchasing may be the best choice.
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These changes would require the disclosure of all liabilities on the balance sheet, replacing straight line rent expenses with straight line depreciation and imputed interest, front ending liabilities of leases to tenants that will likely result in substantially shorter leases.
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The Institute supports legislative efforts to strengthen the depreciation and recapture provisions applicable to the sale of real property by rejecting or repealing discriminatory provisions that limit or disallow existing deductions and by making subject to recapture only that portion of depreciation taken that exceeds straight line depreciation.
IREM policy and legislative activity
If FIFO inventory and straight line depreciation were used in one year and LIFO inventory and accelerated depreciation were used in the subsequent year, the financial statements would not be comparable unless the changes were properly disclosed.
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Wolf said under the old tax laws, to the extent an owner took straight line depreciation on their real estate, all of the gain was taxed at the favorable capital gains tax rate which was 28 percent.
Feds drop capital gains tax

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