Instructions Straight line depreciation is the simplest to determine. Basically you take 100% and divide it by the # of years, so on your problem you take 100% /5 20% for each year. STRAIGHT LINE DEPRECIATION EXAMPLE $100,000 with a 5 year life expectancy $100,000 5 years $20,000 per year You have a $20,000 truck that you think has a 4 year life expectancy and no salvage value. Using straight line depreciation show the depreciation for each year. I'VE COMPLETED THE FIRST TWO YEARS FOR YOU TO GIVE YOU THE ROAD MAP ON HOW TO COMPLETE ALL 3 DEPRECIATION EXAMPLES Original value $20,000 Less Salvage 0 Amount to Depreciate $20,000 ACCUMULATED BOOK VALUE YEAR RATE OF THIS YEAR'S DEPRECIATION DEPRECIATED AMOUNT $5000 Year 25% $5000 15,000 1 25% Year $5000 $10,000 $10,000 2 Year 3 Year Totals Salvage value if any 0 Value at end of $0 year 5