Book Value Straight Line Depreciation
To determine straight line depreciation for the macbook you have to calculate the following.
Book value straight line depreciation. The straight line method results in the same amount of depreciation expense for each year. Now all assets are purchased because they represent future benefits. Note how the book value of the machine at the end of year 5 is the same as the salvage value.
In this case the machine has a straight line depreciation rate of 16 000 80 000 20. The most common method for computing depreciation for financial reporting purposes is the straight line method. According to straight line depreciation your macbook will depreciate 300 every year.