Straight Line Depreciation Formula + Calculator

straight line method equation

Find the equation of a line with slope 2 and y-intercept –3. Find the equation of a line with slope –10 and y-intercept 1/4. Find the equation of a line with slope 1/2 and y-intercept 4. Find the equation of a line with slope –5 and y-intercept 1.

A linear equation always forms a straight line on a graph, and thus, it gets its name ‘linear equation’. Here, x and y are coordinates, p is the length of the perpendicular from origin to the straight line and is the angle between the positive x-axis and the perpendicular of the straight line from the origin. Find the equation of the line which passes through the points A(-2, 0) and B(1, 6) and state the gradient and y-interceptclosey-interceptThe value of the y-coordinate when a graph crosses the y-axis..

Normal Form

Calculating the depreciating value of an asset over time can be tedious. Many accountants, though, tend to use a simple, easy-to-use method called the straight line basis. This method spreads out the depreciation equally over each accounting period. To calculate using this method, first subtract the salvage value from the original purchase price. Then divide that figure from the estimated useful life of the asset. Companies use the straight line basis method to determine the amount to be expensed over accounting periods.

The lines which are drawn vertically and are parallel to the y-axis, or perpendicular to the x-axis, are called vertical lines. They form a 90o or 270o angle with the x-axis and a 0o or 180o angle with the y-axis. The lines which are drawn horizontally and are parallel to the x-axis or perpendicular to the y-axis, are called horizontal lines. They form a 0o or 180o angle with the x-axis and a 90o or 270o angle with the y-axis. To calculate depreciation using a straight line basis, simply divide net price (purchase price less the salvage price) by the number of useful years of life the asset has.

What is the Equation of Straight Line in Coordinate Geometry?

When the amount of depreciation and the corresponding period are plotted on a graph it results in a straight line. Consequently, if we plot ln c against t we will obtain a straight line graph with gradient –k and intercept ln co. So plotting A against c will give a straight line graph with gradient εl and intercept of zero.

straight line method equation

The most common formulas to find equation of straight line are mentioned below. A linear equation is an equation that has a straight line as its graph. In this article, we’ll discuss the equation of a straight line formula, gradient of a straight line straight line method equation formula. We’ll also discuss some examples of how to find the equation of a straight line when Co-ordinates or gradients are given to us. There are n-number of ways to express an equation of a straight line and some are more general than others.

Formula and Calculation of Straight Line Basis

For example, there is always a risk that technological advancements could potentially render the asset obsolete earlier than expected. Straight-Line Depreciation is the uniform reduction in the carrying value of a non-current fixed asset in equal installments across its useful life. Additionally, the straight line basis method does not factor in the actual physical rapid loss of an asset’s value in the early years of its life. At the same time, it does not take into consideration the fact that an asset will likely require more maintenance as it ages. On the downside, the straight line basis method’s major pitfalls lie in its simplicity.

  • For example, we have the standard form, the point-slope form, or the slope-intercept form.
  • The double-declining balance method is a form of accelerated depreciation.
  • A line can have slopes varying from positive, negative, 0, or even infinite slope.
  • The slope-intercept form of a straight line is used to obtain a line’s equation.
  • These forms help us understand how to find the equation of a straight line with the given information.

The definition of a line is, a straight line is the collection of points in between and extending beyond two points. In most geometrical perspectives, a line is an object that does not have formal properties other than it’s length, it’s single-dimensional. You may find the various equations of a straight line calculator on the internet. Find the equation of a line with slope 4 and y-intercept –1.

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