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

[@babysmoofy]

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

[@Edspira]

Thank you for the kind words!

[@nightthemare4742]

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

[@uhmokay1587]

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

[@servicviolation]

Thank you 💕😊

[@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!

[@balqeeshassan9439]

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

[@suzettejonestravelinfo]

thank you for explaining salvage value..

[@Edspira]

Happy to help!

[@dierikho]

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

[@Edspira]

You are welcome!

[@MyFinancialFocus]

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

[@waterford7736]

Excellent job

[@Edspira]

Thank you!

[@kinseygilmore7173]

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

[@ndiaherndon]

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

[@DanielleEldridge94]

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

[@Close2Him15]

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

[@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?

[@reemhesham7139]

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

[@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.

[@sidhanif4652]

Thank you, this has helped alot!

[@gugugu6888]

Thank you so much sir. You save my life 😭

[@cst574]

thank you for the lesson

[@nahidashohana3034]

yes scrap and salvage value same.

[@arckimede2204]

Nice video, thanks 🤚

[@diamondwhite5208]

i thought this was khan Academy from the thumbnail

[@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?

[@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!

[@patience8888]

Thanks very much. Big help!

[@Edspira]

You're very welcome!

[@kousarwaxeer253]

Sir thank you very much.very helpful

[@chrisrodriguezfc]

Thank you for this.

[@ikramunnesa2824]

Thank u

[@Edspira]

Sure thing!

[@HowToDoitright]

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

[@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?

[@dreamer0024]

You are so great !!!!

[@Dwadenizzle313]

Thank you very much! This was helpful

[@justry_right9766]

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

[@CatCatCaat]

What about double entry depreciation ?

[@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.

[@oyinbibobradumbo6969]

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

[@Its_meAyoSussy.]

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

[@nicholson21b1]

yup!

[@Timcudjoe]

is scrap value and salvage value the same?

[@dylan5218]

Yes

[@koolkid1697]

we gang fs

[@caldreamin4250]

Anybody else get distracted by the pizza not the problem?

[@anmarieanandygrant-stuart5558]

helpful

[@josicatimuaydatuwata5909]

Allow me to use your example

[@hamzakayani1632]

That is one expensive Pizza Oven you got there

[@Edspira]

I only go with the highest quality 😀

[@ithinkdnfisrealbutidk3548]

Backbenchers are here...

[@yellca]

Thank you so much for that...great explanation