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Ch. 8 - Long Lived AssetsWorksheetSee all chapters

# Depreciation: Straight Line

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Sections
Initial Cost of Long Lived Assets
Ordinary Repairs vs. Capital Improvements
Depreciation: Straight Line
Depreciation: Declining Balance
Depreciation: Units-of-Activity
Depreciation: Summary of Main Methods
Depreciation for Partial Years
Retirement of Plant Assets (No Proceeds)
Sale of Plant Assets
Change in Estimate: Depreciation
Intangible Assets and Amortization
Natural Resources and Depletion
Asset Impairments
Exchange for Similar Assets

Concept #1: Introduction to Depreciation

Concept #2: Straight Line Depreciation

Example #1: Straight Line Method Through Life of Asset

Practice: ABC Company purchased a new machine on January 1, Year 1 for $44,000. The company expects the machine to last ten years. The company thinks it could sell the scrap metal from the machine for$4,000 at the end of its useful life. If the company uses the straight-line method for depreciation, what will be the net book value of the machine on December 31, Year 4?

Practice: DBQ Company purchased a machine on January 1, Year 1 for $60,000. The company estimated a five year useful life and$8,000 residual value. If the company uses the straight-line method for depreciation, what will be the amount of accumulated depreciation on December 31, Year 2?