Last updated: March 2, 2026 by Dr. David Park

How to Calculate Depreciation

Formula

Straight-line depreciation spreads the cost of an asset evenly over its useful life.

Depreciation reduces taxable income and reflects the declining value of business assets.

Common use cases:

  • Tax deduction planning
  • Asset management
  • Financial statement preparation

Frequently Asked Questions

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Dr. David Park

Applied Mathematician, PhD Mathematics

David holds a PhD in Applied Mathematics from MIT. He has published research on numerical methods and computational algorithms used in engineering and scientific calculators.

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