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
Method of finishing edges of walls, window jams, doors, or projections with decorative strips of wood to give a better appearance as well as providing protection from jagged edges and ...
Rental agreement directly between the landlord and tenant. If the tenant then rents it out to another, it is referred to as a sublease. The relationship takes the following form: ...
Administrator of estate is a term used in common-law jurisdiction for a person assigned a particular responsibility. The administrator of estate definition describes a court-appointed ...
As the term “servient” comes from the root word “serve” and to serve means to perform a duty or a service for another entity, its meaning is easy to define. The term ...
Metal hardware within the construction that is typically not visible, such as bolts, nails, and screws. ...
The external covering finish of a structure which protects it from the elements. Exterior finish materials, including shingles, siding, and paints, are design to resist severe weathering ...
Depth of land used as standard to appraise its value. An example is 100 feet used for residential land. ...
Horizontal wood siding commonly used on the exterior of buildings which overlap each other. ...
Potential homeowners buy land at a location they like and then build their house on it. ...
Have a question or comment?
We're here to help.