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Straight line depreciation

A method of calculating the Depreciation of an Asset which assumes the Asset will lose an equal amount of value each year. The annual Depreciation is calculated by subtracting the Salvage value of the Asset from the Purchase price, and then dividing this number by the estimated useful life of the asset.

Related Terms: 6 Asset, ACH, Depreciation, ECI, Purchase, Salvage value
Other Related Pages: Category: Accounting Starting With: S
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