Straight Line Depreciation Method

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This video explains how to calculate depreciation expense using the straight-line depreciation method. An example is provided to illustrate how straight-line depreciation is calculated, both with and without a salvage value.
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Опубликовано:

28 авг 2014

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Комментарии : 64

@rob8482 6 лет назад

In my last year of accounting bachelor's degree program, you have been a part of most of it. Great work sir. Much appreciated.

@Slow-Ty 4 года назад

Going into my year 2 midterm today in uni, never quite understood all of the depreciation methods more than I do now thanks to you. Keep ‘er goin man, saving kids’ lives out here ❤️

@jus7183 2 года назад

Learned this in 8 minutes compared to my 2.5 hour class! Thank you soo much!

@Edspira 2 года назад

Glad it helped!

@IsJdog911 4 года назад

I like how clearly you explain this you were born to teach well done

@balqeeshassan9439 5 лет назад

Keep going you legend My God blessed your day You safed my whole life I OWE YOU ON THAT THANKS ALOT ✨💐

@Close2Him15 7 лет назад

What a breakdown! Thank you! You made it so easy.

@nightthemare4742 2 года назад

Thanks. When I see your video for my search subject, I become comfort.

@lamija7113 6 лет назад

You are amazing! I was totally confused why my calculations were wrong, but no I understand why! I found other videos helpful as well! THANK YOU!

@Edspira 6 лет назад

Awesome. So glad I was able to clarify this for you! I have 13 videos on PP&E if you are interested in learning more: edspira.com/lessons/property-plant-equipment Thanks for watching!

@kaciemejias8630 2 года назад

i think you taught me more than ive learned in my two years of accounting classes

@Edspira 2 года назад

Thank you for the kind words!

@kinseygilmore7173 4 года назад

Was actually able to use this for my Dietitian exam, THANK YOU

@reemhesham7139 4 года назад

Thank you so much! I'm awaiting your videos!

@sidhanif4652 5 лет назад

Thank you, this has helped alot!

@danielaquino6666 4 года назад

Crystal clear!, just one question, in the second case, we need to know the salvage value, at least before the end of the first year (since we bought the oven), in order to know how to compute the depreciation, right?

@dierikho 2 года назад

Thank you so much, your video is the most useful and most easy to understood. More power to you

@Edspira 2 года назад

You are welcome!

@suzettejonestravelinfo Год назад

thank you for explaining salvage value..

@Edspira Год назад

Happy to help!

@uhmokay1587 3 года назад

You ever is reading this you’re gonna do great on that exam🥰God has got your back

@servicviolation 3 года назад

Thank you 💕😊

@ndiaherndon 2 года назад

This was super helpful! Is there a video that includes how to find the depreciation expense if the useful life changes?

@cst574 5 лет назад

thank you for the lesson

@yellca 7 лет назад

Thank you so much for that...great explanation

@Dwadenizzle313 7 лет назад

Thank you very much! This was helpful

@MyFinancialFocus 2 года назад

Interesting to see how depreciation can be used to present different profits and tax liabilities.

@chrisrodriguezfc 4 года назад

Thank you for this.

@dreamer0024 4 года назад

You are so great !!!!

@kousarwaxeer253 4 года назад

Sir thank you very much.very helpful

@gugugu6888 2 года назад

Thank you so much sir. You save my life 😭

@arckimede2204 3 года назад

Nice video, thanks 🤚

@nahidashohana3034 8 лет назад

yes scrap and salvage value same.

@patience8888 6 лет назад

Thanks very much. Big help!

@Edspira 6 лет назад

You're very welcome!

@DanielleEldridge94 5 лет назад

thank you my exam is in 2 hours and now i finally understand haha

@waterford7736 2 года назад

Excellent job

@Edspira 2 года назад

Thank you!

@melgr8s 6 лет назад

Gosh I appreciate this. It helps that his voice reminds me of Hades from Hercules. :)

@Edspira 6 лет назад

HA...I'll have to look up a clip of Hercules.

@diamondwhite5208 5 лет назад

i thought this was khan Academy from the thumbnail

@dalinareed8149 5 лет назад

What happens if our EUL changes? what if a machine's EUL was 6 years and it was disposed of at the end of year 5?

@CatCatCaat 8 лет назад

What about double entry depreciation ?

@anmarieanandygrant-stuart5558 7 лет назад

helpful

@justry_right9766 4 года назад

Sir. Would u please make a video about MACRS depreciation method? I'm so very confused rn

@ikramunnesa2824 Год назад

Thank u

@Edspira Год назад

Sure thing!

@HowToDoitright Год назад

what about property? like if you are using a home office

@andrewesparza3203 6 лет назад

My professor gave me a question where they provide shipping cost and asks to depreciate using straight line method. Do i just ignore shipping costs or should i include it to the cost of the purchase of equipment to depreciate?

@oyinbibobradumbo6969 3 года назад

What do you do if you’re not given a residual value

@xsauce3858 6 лет назад

How to calculate using the same method when the disposal value and useful life is not given. For example if all vehicles are to be depreciated at 20% using the straight line method. 20% of the cost will be the constant depreciation ? And if the vehicle is borough half way in the year the depreciation will be half of the 20% ?

@Edspira 6 лет назад

I'm assuming that you are trying to solve a homework problem. If you are told that depreciation will be 20% per year, then you can assume that the useful life is 5 because 1/5=20%. If a salvage value isn't given, then I would probably assume that it is zero. If this is a business question on how to determine a useful life and salvage value for the vehicle, then let me know. This is a little more complicated and would require a longer response. Thanks for watching!