When companies invest in assets, they expect those assets to last a certain number of years. Over time, they’re depreciated based on their remaining serviceable life and any potential saleable value ...
Straight-line depreciation involves reporting the same amount of depreciation expense each year. (If you were to draw the graph of the expense over time, it would form a straight horizontal line, ...
Depreciation expense can be a big portion of a company’s total expense. And since expenses decrease income, it affects the overall value of a company. Understanding what it is and the methods can help ...