about depreciation

Straight line depreciation method即係計折舊ge方法係every year扣，以你o個個大廈做例子...個building ge成本係值$850,000 甘如果一次個一年入晒850000做expense就會太過唔公平，如果個building我地假設佢可以用20年，我地就分二十年扣除佢ge價值(以depreication 的形式)

$850,000除20，即一年就扣$42,500，甘你o個個provision for depreciation暫時有$127,500，甘我地就可以知道佢做左3年depre.(3 x 42500 = 127500)
今年我地做depreciation都係做$42,500(因為係straight line method)即year end果陣就總共會有$127,500 +$42,500 = $170,000，甘個building ge net book value就係 $850,000 - $170,000 = $680,000

(當然depreciation有好多唔同ge方法，如reducing, sum of dight, revaluation甘...你遲d就學到gala...)

straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years the asset can be reasonably expected to benefit the company.

purchase price of asset - approximate salvage value
-------------------------- (divided by) --------------------------
estimated useful life of asset