What is Depreciation? Formula, Journal Entry & Methods

The most common depreciation method is the straight-line method, which is used in the example above. The cost available for depreciation is equally allocated over the asset’s life span. As the depreciation expense is constant for each period, the depreciated cost decreases at a constant rate under the straight-line depreciation method. Depreciation is a monetary… Continue reading What is Depreciation? Formula, Journal Entry & Methods