InvestorWords.com

straight line depreciation


Definition

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 Videos




Search for another term


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z