In the straight Line Method of bookkeeping does the carrying amount gradually decrease when the cost of assets is concerned?
In the Straight Line Method of bookkeeping does the carrying method gradually decrease when the cost of assets is concerned? If I haven't myself could someone explain the calculation please?
- olliverLv 61 year agoFavourite answer
Straight Line Depreciation = (Cost – Salvage Value) / Useful Life
Carrying value = Cost - Depreciation
Each year the carrying value decreases by the depreciation for the year.
- Don GLv 71 year ago
The Carrying Value of any asset consists of its original cost less amortization or depreciation to date.