The Straight Line Formula

Depreciation expense Cost Residual value Useful life of assets For example the ABC company bought a machine for Rp100. According to straight-line depreciation your MacBook will depreciate 300 every year.

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The straight line depreciation equation assumes a regular decrease in value over its useful lifespan.

The straight line formula. Cost of the asset is the purchase price of the asset. The general equation of a straight line is y mxc where m is the gradient and y c is the value where the line cuts the y-axis. Slope m change in y change in x yA yB xA xB.

358359517518 1156 1157 3204 3205 3206 3207. Formula for Straight Line Depreciation Annual Depreciation Expense Asset Price - Residual Value Useful life of the asset Double Declining Balance Depreciation. Subtract the salvage value from the assets purchase price then divide that figure by the projected useful life of the asset.

It doesnt account for variables that could accelerate its decline. Y - y1 m x - x1 Here x1y1 is the point on the coordinate plane through which the line is passing and m is the slope. Another popular form is the Point-Slope Equation of a Straight Line.

The normal form of a straight line is given by the equation. Straight Line Depreciation Formula. Pensive calculates the annual straight-line depreciation for the machine as.

To calculate straight line depreciation the accountant divides the difference between the salvage value and the cost of the equipmentalso referred to as the depreciable base or asset costby. 1 5-year useful life 20 depreciation rate per year. Class 11 maths formula-chapter Straight Line is prepared by senior faculty of entrancei are best suited for revision and quick recap of all concepts of Straight LineDownload the pdf of Class 11 maths formula chapter- Straight Line from entrancei.

The annual depreciation expense is a measure of the loss of value of the item. 8 rows The general equation of a line in two variables of the first degree is represented as. The straight line depreciation formula for an asset is as follows.

Annual depreciation 2000 - 500 5 years 1500 5 years 300. Looking at this diagram. There are good reasons for using both of these methods and the right one depends on the asset type in question.

Equation of line that passes through the points x 1 y 1 x 2 y 2 is. The straight-line method is the simplest and most commonly used way to calculate depreciation under generally accepted accounting principles. When the slope and a point through which the required straight line is passing are given to us and we need to find the equation of the straight line the use the formula.

The formula for straight-line depreciation is. 20 depreciation rate x 50000 depreciable asset cost 10000 annual depreciation. Xcos alpha ysin alpha p where p is the length of the perpendicular from O00 to the line and α.

Of a straight line is y mx c where m is the gradient and 0c the coordinates of the y-intercept. Eqannual depreciation expense frac cost of item -. Purchase cost of 60000 estimated salvage value of 10000 Depreciable asset cost of 50000.

Point A is 64 at x is 6 y is 4 point B is 23 at x is 2 y is 3 The slope is the change in height divided by the change in horizontal distance. Y y 1 y 2 y 1 x 2 x 1 x x 1 where slope m y 2 y 1 x 2. The straight-line depreciation formula is.

According to straight line depreciation the company machinery will depreciate 500 every year. Through year 3 4 5 6 7 8 9 10 the depreciation value remains 500. Ad Over 27000 video lessons and other resources youre guaranteed to find what you need.

Useful life of asset represents the number of periodsyears in which the asset is expected to be used by the company. Latex Their separate equations are latexysqrt 3x latex and latexy 1sqrt 3x latexor y tan 60 x and y tan 30 x. Year 2 depreciation value of 500.

To determine straight-line depreciation for the MacBook you have to calculate the following. For year 1 the machinery will have a depreciation value of 500. Straight Line Depreciation Formula.

To download the pdf of Class 11 maths formula chapter- Straight Line click the Link given below. The equation of a straight line can be written in many other ways. Subtract the Y values subtract the X values.

Ax By C. In other words we. The given equation of pair of straight lines can be rewritten as latexleft sqrt 3x-y rightleft x-sqrt 3y right0.

Salvage value is the value of the asset at the end of its useful life. After rotation the separate equations are. Equation of a straight line.

This number c is called the intercepton the y-axis.

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