Straight Line Depreciation Method

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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[@rob8482]

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]

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]

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

[@Edspira]

Glad it helped!

[@IsJdog911]

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

[@nightthemare4742]

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

[@balqeeshassan9439]

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

[@babysmoofy]

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

[@Edspira]

Thank you for the kind words!

[@lamija7113]

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]

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!

[@suzettejonestravelinfo]

thank you for explaining salvage value..

[@Edspira]

Happy to help!

[@Close2Him15]

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

[@kinseygilmore7173]

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

[@dierikho]

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

[@Edspira]

You are welcome!

[@uhmokay1587]

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

[@servicviolation]

Thank you 💕😊

[@reemhesham7139]

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

[@sidhanif4652]

Thank you, this has helped alot!

[@DanielleEldridge94]

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

[@waterford7736]

Excellent job

[@Edspira]

Thank you!

[@MyFinancialFocus]

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

[@ndiaherndon]

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

[@gugugu6888]

Thank you so much sir. You save my life 😭

[@cst574]

thank you for the lesson

[@melgr8s]

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

[@Edspira]

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

[@arckimede2204]

Nice video, thanks 🤚

[@danielaquino6666]

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?

[@nahidashohana3034]

yes scrap and salvage value same.

[@diamondwhite5208]

i thought this was khan Academy from the thumbnail

[@chrisrodriguezfc]

Thank you for this.

[@kousarwaxeer253]

Sir thank you very much.very helpful

[@dreamer0024]

You are so great !!!!

[@patience8888]

Thanks very much. Big help!

[@Edspira]

You're very welcome!

[@ikramunnesa2824]

Thank u

[@Edspira]

Sure thing!

[@Dwadenizzle313]

Thank you very much! This was helpful

[@yellca]

Thank you so much for that...great explanation

[@xsauce3858]

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]

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!

[@andrewesparza3203]

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?

[@dalinareed8149]

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?

[@jkingsbury96]

Residual value the same as salvage value?

[@AnesaDevi]

Justin Kingsbury more or less. Yes. Its the value if the item at the end of x amount of years.

[@CatCatCaat]

What about double entry depreciation ?

[@koolkid1697]

we gang fs

[@justry_right9766]

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

[@HowToDoitright]

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

[@anmarieanandygrant-stuart5558]

helpful

[@caldreamin4250]

Anybody else get distracted by the pizza not the problem?

[@Timcudjoe]

is scrap value and salvage value the same?

[@dylan5218]

Yes

[@oyinbibobradumbo6969]

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

[@hamzakayani1632]

That is one expensive Pizza Oven you got there

[@Edspira]

I only go with the highest quality 😀

[@Its_meAyoSussy.]

I would I record this on the income statement as depreciation expense every year at $10,000?

[@nicholson21b1]

yup!

[@josicatimuaydatuwata5909]

Allow me to use your example

[@ithinkdnfisrealbutidk3548]

Backbenchers are here...