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Depreciation is a method used to allocate the cost of a tangible asset over its useful life. There are various methods used to calculate depreciation, each suitable for different types of assets and business requirements. The most common methods are: 1. Straight-Line Method This is the simplest and most commonly used method of depreciation. It allocates the cost of the asset evenly over its useful life. The formula for straight-line depreciation is: [ \text{Depreciation Expense} = \frac{\text{Cost of Asset} - \text{Salvage Value}}{\text{Useful Life of Asset}} ] Here, the cost of the asset is the initial purchase price, the salvage value is the ___ ___ _________ _________ ___ _____ _____ ___ _________ _______ ______ _________.
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