Straight line method (‘SLM’) of depreciation is a simple method where equal amount is charged or amortized every year. This is calculated basis net of assets cost and residual value of assets divided by useful live of the assets.

Nov 26, 2019 · We know that there are 2 methods of depreciationWDV Method (Written down Value Method)SLM Method (Straight Line Method)WDV MethodSuppose Asset Value is 5000 and Depreciation Rate is 10% WDV.Depreciation will be computed as followsParticularsYear 1Year 2Year 3Opening Value500045004050Less Dep 10%5004

the asset over its remaining useful life using the formula for calculation of rate for depreciation as per WDV method which is reproduced below – R = {1 – (s/c)^1/n } x 100 (Vikram This is to the power) The question was about the depreciation part of the equation. Supply, demand and inflation can certainly hide the effects of depreciation but they don't change the fact that as you fly an airplane it loses a little value with each hour flown. BTW, a 1997 0 time, 0 hour C172S is around 125k today, not 150. Mar 02, 2014 · Method of computing Depreciation: There are many methods for the calculating the depreciation of an asset. All these methods help to ascertain estimated amount of depreciation to be charges to the revenue of the period in which the asset is used.