# How Do You Find The Book Value Using The Straight Line Method?

## What is the formula for calculating straight line depreciation?

Also known as straight line depreciation, it is the simplest way to work out the loss of value of an asset over time.

Straight line basis is calculated by dividing the difference between an asset’s cost and its expected salvage value by the number of years it is expected to be used..

## What is depreciation example?

In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery etc..

## What is straight line formula?

The general equation of a straight line is y = mx + c, where m is the gradient, and y = c is the value where the line cuts the y-axis. This number c is called the intercept on the y-axis.