1 Press Ctrl-A ©G Dear 2009 – Not to be sold/Free to use Straight Line Depreciation Stage 6 - Year 12 General Mathematics HSC

2 Straight Line Method (1/4) $ Value of asset declines by a constant amount each year. Salvage Value: S = V 0 - Dn S = Salvage ValueV 0 = Purchase price D = Annual Depreciationn = Number of Periods Press You Tube Video

3 Straight Line Method (2/4) A boat is bought for $ and depreciates at $1,500/annum. Calculate the salvage value after 7 years. S = V 0 - Dn S =S = x 7 = $ Purchase PriceAnnual DepreciationNumber of periods

4 Straight Line Method (3/4) A boat is bought for $ and depreciates at $1,500/annum. Calculate the salvage value after 7 years. S = V 0 - Dn S =S = x 7 = $ Purchase PriceAnnual DepreciationNumber of periods

5 Straight Line Method (4/4) A plane is bought for $ and depreciates at $25 000/annum. If it is replaced when the salvage value is $100,000, how long till it is replaced? S = V 0 - Dn = Salvage Value Purchase Price Annual Depreciation n Number of periods n n = n = ÷25000 n = 8years