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
Early American architectural housing style stressing a gambrel roof and overhanging eaves. ...
Same as term industrial park: Usually a fairly large site zoned and planned for the purpose of industrial development and located outside the main residential area of a city. Industrial ...
Possession and use of a property estate by virtue of a lease. There are four types of leasehold estates: estate for years, periodic tenancy, tenancy at will, and tenant at sufferance. ...
Legal order for a person to present at a deposition or trial documents in his possession, such as related to a real estate transaction. ...
A detailed list of property. The goods of a business, such as houses by a builder. ...
Federal government agency monitoring and regulating corporate financial reporting and disclosure, use of accounting principles, auditing practices, and trading activities. Its regulations ...
Skeleton (bones) of a building. ...
Rights, interest, and benefits inherent in the ownership of real estate, as distinguished from personal property ...
Landlord's right to receive the value of the tenant's property to pay for unpaid rents or for damages to the leased premises. ...
Have a question or comment?
We're here to help.