1. STRAIGHT-LINE DEPRECIATION
Original Estimated Estimated Total
Cost – Salvage Value = Depreciation Expense    
$1, – $ = $1,000.00
Estimated Years of Annual
Total Depreciation Estimated Depreciation
Expense ÷ Useful Life = Expense
$1, ÷ 5 = $200.00
Lesson 21-2, page 550

2. CALCULATING DEPRECIATION EXPENSE FOR PART OF A YEAR
Annual Months Monthly
Depreciation in a Depreciation
Expense ÷ Year = Expense    
$ ÷ 12 = $75.00
Monthly Number of Partial Year’s
Depreciation Months Asset Depreciation
Expense  Is Used = Expense
$  5 = $375.00
Lesson 21-2, page 550

3. CALCULATING ACCUMULATED DEPRECIATION
20X2 20X3 20X3
Accumulated Depreciation Accumulated
Depreciation + Expense = Depreciation    
$ $ = $600.00
CALCULATING BOOK VALUE
Original Accumulated Ending
Cost – Depreciation = Book Value
$1, – $ = $650.00
Beginning Annual Ending
Book Value – Depreciation = Book Value
$ – $ = $650.00
Lesson 21-2, page 551

4. TERMS REVIEW depreciation expense estimated salvage value
straight-line method of depreciation
accumulated depreciation
book value of a plant asset
Lesson 21-2, page 552