Reviewed by Charlene Rhinehart Fact checked by Vikki Velasquez Businesses depreciate long-term assets for both tax and accounting purposes. For tax purposes, businesses can deduct the cost of the ...

How to Calculate Depreciation Using Excel. Two common ways of calculating depreciation are the straight-line and double declining balance methods. Excel can accomplish both using the SLN function ...

How to Calculate Tax Depreciation. Typically, companies calculate depreciation for their own purposes using a method called straight-line depreciation. This method takes the acquired cost of the ...

In order to calculate basic depreciation, a company just needs two numbers: the initial cost of the asset and its estimated “useful life.” The straight-line method of calculating depreciation ...

Property depreciation is typically calculated using the straight-line method, which divides the original value of the property plus any additional costs associated with its purchase by […] ...

Straight-line depreciation is calculated by subtracting the salvage value from the asset’s cost and dividing it by the years estimated for its useful life.

The example laptop would depreciate $180 the first year, which is 10% — the annual rate of straight-line depreciation – times double the $900 depreciable value or $1,800.

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

As the name of the "straight-line" method implies, this process is repeated in the same amounts every year. One final consideration on depreciation and amortization expenses ...

Amortization and depreciation are non-cash expenses on a company's income statement. Depreciation represents the cost of capital assets on the balance sheet being used over time, and amortization ...