The formula to calculate the Straight Line Depreciation (SLD) is:
\[ SLD = \frac{C - Ss}{t} \]
Where:
Straight Line Depreciation is a method of computing depreciation and amortization by dividing the difference between an asset's cost and its expected salvage value by the number of years used.
Let's assume the following values:
Using the formula:
\[ SLD = \frac{4500 - 455}{10} \]
Evaluating:
\[ SLD = 404.5 \]
The Straight Line Depreciation is 404.5.
| Asset's Cost | Salvage Value | Life (years) | Straight Line Depreciation |
|---|---|---|---|
| 4000 | 400 | 9 | 400.00 |
| 4000 | 400 | 10 | 360.00 |
| 4000 | 400 | 11 | 327.27 |
| 4000 | 450 | 9 | 394.44 |
| 4000 | 450 | 10 | 355.00 |
| 4000 | 450 | 11 | 322.73 |
| 4000 | 500 | 9 | 388.89 |
| 4000 | 500 | 10 | 350.00 |
| 4000 | 500 | 11 | 318.18 |
| 4500 | 400 | 9 | 455.56 |
| 4500 | 400 | 10 | 410.00 |
| 4500 | 400 | 11 | 372.73 |
| 4500 | 450 | 9 | 450.00 |
| 4500 | 450 | 10 | 405.00 |
| 4500 | 450 | 11 | 368.18 |
| 4500 | 500 | 9 | 444.44 |
| 4500 | 500 | 10 | 400.00 |
| 4500 | 500 | 11 | 363.64 |
| 5000 | 400 | 9 | 511.11 |
| 5000 | 400 | 10 | 460.00 |
| 5000 | 400 | 11 | 418.18 |
| 5000 | 450 | 9 | 505.56 |
| 5000 | 450 | 10 | 455.00 |
| 5000 | 450 | 11 | 413.64 |
| 5000 | 500 | 9 | 500.00 |
| 5000 | 500 | 10 | 450.00 |
| 5000 | 500 | 11 | 409.09 |