Straight$-$Line Depreciation

$($a$)$ The depreciable cost

$($b$)$ The straight$-$line rate

$($c$)$

The annual straight$-$line

depreciation

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Depreciable cost is the difference between the asset's initial cost and its residual value. The residual value is the estimated value at the end of the useful life.

Straight$-$line depreciation allocates the depreciable cost of the asset equally over the expected useful life.