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May 27,  · Straight line basis is the simplest method of calculating depreciation and amortization, the process of expensing an asset over a specific period. more Residual Value.

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Accounting Depreciation. The decrease in the value of a fixed asset due to its usages over time is called depreciation. There are many depreciation methods that the entities could use. Still, in the article, we will discuss two depreciation methods that are normally used to calculate depreciation for the entity fixed assets and how accumulated depreciation is related to the .