When companies invest in assets, they expect those assets to last a certain number of years. Over time, they’re depreciated based on their remaining serviceable life and any potential saleable value ...

Depreciation expense can be a big portion of a company’s total expense. And since expenses decrease income, it affects the overall value of a company. Understanding what it is and the methods can help ...

The straight-line method depreciates an asset on the assumption that the asset will lose the same amount of value for the duration of its service life. The straight-line method requires you to ...

Straight-line depreciation involves reporting the same amount of depreciation expense each year. (If you were to draw the graph of the expense over time, it would form a straight horizontal line, ...

Learn how to calculate the written-down value (WDV) to determine the current worth of an asset after depreciation or amortization, also known as book value.

The straight line method spreads asset costs evenly over its lifespan, aiding budget forecasts. Its simplicity is favored by many tax authorities, making it a widely used accounting tool. Businesses ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Depreciation is a calculation used to work out the value of assets over time and use. It's drawn from two essential pieces of information—how much an asset originally cost, and its "useful life." ...

Legislation passed in 2025 can provide significant additional tax savings for individuals who own rental properties or ...

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line ...