Input the initial value (asset cost), the salvage value and period of depreciation.
Asset Cost: Initial value of the asset
Salvage Value: The remaining value after the depreciation
Period: How long the userful life of the asset is
Asset Cost ($):
Salvage Cost ($):
Period (userful life):
years*Numbers are rounded to the nearest hundredths.
Answer:
Depreciation is the reduction in value of an asset over time due to physical wear and tear or planned obsolescence of software and computers.
Asset Cost is the initial value of the asset before any depreciation. Salvage cost is what will be left after the full depreciation. And useful life is how long the asset will be in use.
In straight-line depreciation method, the cost is distributed evenly across the useful life of the asset.
Depreciation per year = (Asset Cost - Salvage Value) / Userful life