Straight-line depreciation spreads an asset's cost evenly over its useful life. It is the simplest and most common depreciation method: equal deductions each year until the asset reaches its salvage value.
💡
Pro Tip
For tax purposes, US businesses can use MACRS (Modified Accelerated Cost Recovery System) which front-loads depreciation, giving bigger tax deductions in early years. This is usually more advantageous than straight-line.
⭐
Did You Know?
Under US GAAP, goodwill from acquisitions is no longer amortized (depreciated) on the income statement — it's tested annually for impairment instead. This change in 2001 significantly boosted reported earnings for acquisition-heavy companies.
References
🔒
100% Bure
Hakuna usajili
✓
Sahihi
Mifumo iliyothibitishwa
⚡
Papo Hapo
Matokeo unapoandika
📱
Tayari kwa Simu
Vifaa vyote