Straight-Line Methods

The straight-line method is the simplest and most commonly used method for calculating depreciation. It can be used for any type of depreciable property. Under the straight-line depreciation method, the basis of the asset is written off evenly over the useful life of the asset. The same amount of depreciation is taken each year.

The straight-line method is approved under Generally Accepted Accounting Principles (GAAP). In general, the amount of depreciation equals an asset's depreciable basis divided by its estimated life.

The application supports four standard straight-line methods, each using a different averaging convention:

• Midmonth
• Full month
• Half-year
• Modified half-year