How To Calculate Straight-line Depreciation

Depreciation is an accounting principle defined as the reduction of recorded cost of any tangible or fixed asset over a period in a systematic manner until the value of the asset decreases to zero or becomes negligible. A tangible asset can be anything that a business might utilize for their daily operations. Some of the common tangible or fixed assets include land, buildings, furniture, office equipment, machinery, etc. There are three methods of calculating depreciation over a period that all public accounting firms in Edmonton use - straight-line method, unit of production method and double-declining balance method. In this article, we will put light on the first method.

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