Straight-line Depreciation
Definition of "Straight-line depreciation"
The depreciation method where an equal amount of depreciation expense is allocated to each full period of the asset's useful life. The amount of depreciation is computed as follows; Annual depreciation = (Original costs -Salvage value)/ Useful life. For example, assume that the building costs $800,000 and has an estimated useful life of 20 years. The estimated salvage value at the end of the 5-year period is $200,000. Then the straight-line depreciation per year is ($800,000 - $200,000)/20 years= $30,000/year.
Popular Real Estate Terms
Percentage of rentals estimated not to be made because of actual and anticipated vacancies. ...
property that has been segregated into parts. ...
Person who dies leaving a will specifying the distribution of the estate. ...
Written proposals and acceptances applicable to the aspects of the transaction. The escrow agent must follow the purchase and sale agreement. ...
Individually owned lots and houses with community ownership of common areas. ...
Tenant breaks the lease because the landlord does not keep the premises habitable. ...
The right to demand that title be conveyed upon payment of the purchase price. ...
Same as term junior mortgage: Mortgage placed on a property after a previous mortgage. It can be a second, third, etc. mortgage. A junior mortgage is subordinate to the terms of a previous ...
See savings and loan association. ...
Have a question or comment?
We're here to help.