Learn how to calculate asset depreciation and amortization using the straight-line basis method. Discover its advantages, ...

The straight-line method is easy to understand and apply in business. The disadvantage of the straight-line method is that it recognizes tax expenses slower than accelerated methods of amortization.

An example of finding interest expense with the straight-line method For example, say that a company wants to issue a 10-year bond for $10 million at a 5% annual rate.

How to use the straight-line method Calculating bond premium amortization using the straight-line method couldn't be simpler.

The straight line method: Here's a clear-cut guide to understanding asset depreciation and amortization.

There are two main methods of calculating depreciation, the straight-line method and the declining balance method. Here's the difference between the two, and when each method might be useful.

Learn the best method for calculating depreciation for tax reporting purposes according to generally accepted accounting principles, or GAAP.

For this reason, it is unnecessary to switch from the double-declining balance method to the straight-line method to comply with GAAP standards.

Calculating bond premium amortization using the straight-line method couldn't be simpler. First, calculate the bond premium by subtracting the face value of the bond from what you paid for it.