How we worked it out
Updated as you change the numbers.
- Each year = (cost − salvage) ÷ life = ($20,000.00 − $2,000.00) ÷ 5.
Method and assumptions
Straight-line spreads the depreciable amount evenly. Double-declining balance takes twice the straight-line rate from the remaining book value, front-loading depreciation, and switches to straight-line once that gives more. Sum-of-the-years’ digits weights earlier years more. US tax depreciation uses MACRS tables, which differ from these book methods.
Questions
What is straight-line depreciation on $20,000 over 5 years with $2,000 salvage?
$3,600 a year.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.