Accounting for IGCSE & O level - Accounting Procedures (Section 19 - No. 9)
What is the formula for calculating depreciation using the straight-line method?
(Cost - Residual Value) / Useful Life
Cost * Depreciation Rate
(Cost - Accumulated Depreciation) * Depreciation Rate
Cost / Useful Life
Explanation
The straight-line method evenly distributes the depreciable amount (cost less residual value) over the asset's useful life.
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