How it is calculated
Straight-line depreciation divides the amount written off by the number of years. Tax classes, and the factors of one particular asset, are not filled in here.
Per year = (initial − salvage) / term
Where the numbers come from
- Initial value
- Salvage value
- Term — unit in the field: years
Example
An item worth 100 000 currency units, a residual of 10 000, over 5 years. Each year (100 000 − 10 000) / 5 = 18 000 currency units is written off.
Questions
Can the salvage value be zero?
Yes, enter 0. Then the whole starting cost is written off.
Is a month a year divided by 12?
Yes. On this screen a year is split into exactly twelve parts, with no production calendar.
Is this an accounting entry?
No, only the arithmetic of equal shares. Check the accounting rules on their own.