• STRAIGHT LINE DEPRECIATION
• 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.

				Original value
				Less Salvage - 0
				Amount to Depreciate
YEAR	RATE OF DEPRECIATION	THIS YEARS DEPRECIATED AMOUNT	ACCUMULATED	BOOK VALUE
Year 1
Year 2
Year 3
Year 4
Totals
			+ Salvage value if any	+ 0
			Value at end of year 5	$

There are numerous accelerated plans -This one is -DECLINING BALANCE

• Example. No salvage value used in this example, $100,000 over 5 years
• 5+4+3+2+1 =15
• Year 1 5/15 X $100,000
• Year 2 4/15 X $100,000
• Year 3 3/15 X $100,000
• Year 4 2/15 X $100,000
• Year 5 1/15 X $100,000