straight-line method

Examples of straight-line method in the following topics:

• Impact of Depreciation Method

  • The four most common methods of depreciation that impact revenues and assets are: straight line, units of production, sum-of-years-digits, and double-declining balance.
  • Here is an example of how to calculate depreciation expense under the straight-line method.
  • Sum-of-years digits is a depreciation method that results in a more accelerated write off of the asset than straight line but less than double-declining balance method.
  • This method will reduce revenues and assets more rapidly than the straight-line method but not as rapidly as the double-declining method.
  • To calculate depreciation using the double-declining method, its possible to double the amount of depreciation expense under the straight-line method.

• Limited-Life Impairment

  • Limited-life intangibles are amortized throughout the useful life of the intangible asset using either the units of activity or the straight-line method.
  • Intangible assets with a limited-life are amortized on a straight-line basis over their economic or legal life, based on whichever is shorter.
  • Limited-life intangibles are systemically amortized throughout the useful life of the intangible asset using either units of activity method or straight-line method.

• Depreciation

  • If straight-line depreciation is used, what will be the annual depreciation expense?
  • The straight-line method of depreciation reduces the book value of an asset by the same amount each period.
  • Straight-line depreciation is the simplest and most-often-used technique .
  • The economic reasoning behind the straight-line method involves the acceptance that depreciation is an approximation of the rate at which an asset transfers value to the operations of a business.
  • The most commonly used rate is double the straight-line rate.

• Methods of Depreciation

  • Some of the most common methods used to calculate depreciation are straight-line, units-of-production, sum-of-years digits, and double-declining balance, an accelerated depreciation method.
  • Straight-line depreciation has been the most widely used depreciation method in the U.S. for many years due to its simplicity.
  • To apply the straight-line method, a company charges an equal amount of the asset's cost to each accounting period.
  • First, calculate the straight-line depreciation rate.
  • The deduction for depreciation is computed under one of two methods (declining balance switched to straight line or only straight line ) at the election of the taxpayer.

• Depreciation

  • Several standard methods of computing depreciation expense may be used, such as fixed percentage, straight line, and declining balance methods.
  • Straight-line depreciation is the simplest and most often used technique, in which the company estimates the salvage value of the asset at the end of the period during which it will be used to generate revenue (useful life).
  • One popular accelerated method is the declining-balance method.
  • The most common rate used is double the straight-line rate: Annual Depreciation = Depreciation Rate * Book Value at Beginning of Year.
  • Sum-of-years' digits is a depreciation method that results in a more accelerated write-off than straight line, but less than the declining-balance method.

• Derivatives and Rates of Change

  • Historically, the primary motivation for the study of differentiation was the tangent line problem, which is the task of, for a given curve, finding the slope of the straight line that is tangent to that curve at a given point.
  • The simplest case is when $y$ is a linear function of x, meaning that the graph of $y$ divided by $x$ is a straight line.
  • This gives an exact value for the slope of a straight line.
  • If the function $f$ is not linear (i.e., its graph is not a straight line), however, then the change in $y$ divided by the change in $x$ varies: differentiation is a method to find an exact value for this rate of change at any given value of $x$.
  • In other words, differentiation is a method to compute the rate at which a dependent output $y$ changes with respect to the change in the independent input $x$.

• The Ray Aspect of Light

  • These three methods of light travel are shown in this image .
  • The word ray comes from mathematics, and refers to a straight line that originates at some point.
  • Even when passing through a material, or bouncing off of a material in a reflection, the light continues to travel in a straight line, even if that line has changed direction.
  • The light will continue in a straight line or ray until it reaches the observer.
  • This is only a directional change and will continue in this new path, but still as a straight line, or ray.

• A Graph of Averages

  • Linear (straight-line) relationships between two quantitative variables are very common in statistics.
  • This can be done by drawing a line through the scatterplot.
  • A good line of regression makes the distances from the points to the line as small as possible.
  • The most common method of doing this is called the "least-squares" method.
  • The points on a graph of averages do not usually line up in a straight line, making it different from the least-squares regression line.

• Beginning with straight lines

  • While the relationship is not perfectly linear, it could be helpful to partially explain the connection between these variables with a straight line.
  • Straight lines should only be used when the data appear to have a linear relationship, such as the case shown in the left panel of Figure 7.6.
  • The right panel of Figure 7.6 shows a case where a curved line would be more useful in understanding the relationship between the two variables.
  • We only consider models based on straight lines in this chapter.

• Constant Velocity Produces a Straight-Line

  • If a charged particle's velocity is parallel to the magnetic field, there is no net force and the particle moves in a straight line.
  • If an object experiences no net force, then its velocity is constant: the object is either at rest (if its velocity is zero), or it moves in a straight line with constant speed (if its velocity is nonzero).
  • Because velocity is a vector, the direction remains unchanged along with the speed, so the particle continues in a single direction, such as with a straight line.
  • In this case a charged particle can continue with straight-line motion even in a strong magnetic field.
  • Identify conditions required for the particle to move in a straight line in the magnetic field