Accounting for IGCSE & O level - Accounting Procedures (Section 7 - No. 29)

What formula is used in the straight-line method?
Cost of asset / useful life
(Cost of asset - residual value) / useful life
Cost of asset * useful life
(Cost of asset + residual value) / useful life

Explanation

Annual depreciation = (Cost of asset - residual value) / useful life (in years).

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