It may be straight line depreciation
or reducing balance; in the end, it is pretty much the same which is, there is a reduction in the value of the asset.
"[w]hile a linear, or straight line depreciation
method is most
However, cost recovery for structures (including buildings) would remain unchanged with a 27.5-year straight line depreciation
for residential buildings and 39-year straight line depreciation
for nonresidential buildings.
179 deduction or bonus depreciation can be recovered using straight line depreciation
over a 15-year recovery period (Code Sec.
Personal property has a short recovery period (e.g., 5 or 7 years) and is also eligible for accelerated depreciation (e.g., double declining balance as oppose to straight line depreciation
Straight line depreciation
is obliged for intangible fixed assets.
Some of the best real estate appraisers in the United States were consulted for their opinions regarding the assumptions made in using a straight line depreciation
rate of 20/o in projecting the future values of frame residential properties.
Also, the asset's salvage value will be zero, the firm's weighted average cost of capital is k = 10%, the corporate tax rate is 33%, and straight line depreciation
over the 20 year economic life of the asset is used by both the firm and the tax authorities.