Two common ways of calculating depreciation are the straight-line and double declining balance methods. Excel can accomplish both using the SLN function to calculate the straight line -- a standard ...

Depreciation expense can be a big portion of a company’s total expense. And since expenses decrease income, it affects the overall value of a company. Understanding what it is and the methods can help ...

The straight-line method depreciates an asset on the assumption that the asset will lose the same amount of value for the duration of its service life. The straight-line method requires you to ...

The straight line method spreads asset costs evenly over its lifespan, aiding budget forecasts. Its simplicity is favored by many tax authorities, making it a widely used accounting tool. Businesses ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...

When a business acquires an asset to be used in its operations, the cost of the asset is generally not expensed all at once. Rather, the cost is depreciated over a period of time that depends on the ...

When companies invest in assets, they expect those assets to last a certain number of years. Over time, they’re depreciated based on their remaining serviceable life and any potential saleable value ...

Depreciation is the recovery of the cost of a physical asset, like property or equipment, over multiple years. It allows companies to spread out the cost of some expenses, reduce taxable income and ...

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line ...