How do You Calculate Depreciation?

You can use something called a straight line depreciation method to find the depreciation value of an item. This method divides the cost by the life. For example if you buy a couch for $500, you would find out what the life expectancy of it will be. We will use 5 years in this example. So you would divide $500 by 5 and get $100 per year. You can find more information here: .
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