Learn how to calculate asset depreciation and amortization using the straight-line basis method. Discover its advantages, ...

Depreciation offers multiple calculation methods. Amortization almost always follows a straight-line approach, meaning the cost is evenly spread across the asset's useful life.

The straight-line method is easy to understand and apply in business. The disadvantage of the straight-line method is that it recognizes tax expenses slower than accelerated methods of amortization.

Knowing this, you'll notice that the straight line method will result in more discount or premium amortization during earlier years than the effective interest method.

Using the straight-line method of amortization, which is a method for charging a cost to an expense at a consistent rate over time, the company's annual amortization expense for the license will ...

If the patent costs $17,000 to develop, the straight-line method is calculated by subtracting the salvage value from the patent cost and then dividing by the useful life.

In order to calculate basic depreciation, a company just needs two numbers: the initial cost of the asset and its estimated “useful life.” The straight-line method of calculating depreciation ...

The method of dividing an asset’s value evenly over its lifespan is called the straight-line basis, which is almost always the process used to calculate amortization.

What is amortization? Amortization is a technique used to lower the value of an intangible asset or a loan over a period of time. Click to learn more about amortization.

Calculating bond premium amortization using the straight-line method couldn't be simpler. First, calculate the bond premium by subtracting the face value of the bond from what you paid for it.

Another major difference is that amortization is almost always implemented using the straight-line method, whereas depreciation can be implemented using either the straight-line or accelerated method.