Worked depreciation calculations, including partial years and disposals.
Annual depreciation = (cost − salvage value) ÷ useful life in years. Monthly = (cost − salvage) ÷ months.
Book value = cost − accumulated depreciation. Gain or loss on disposal = proceeds − book value.
FixRight Appliance Repair bought a van on January 1 for $8,000.00. It expects to use it for 4 years with a salvage value of $1,000.00, using straight-line depreciation. Record depreciation for the year ended Dec 31, 2026.
| Depreciation Expense | $1,750.00 | |
| Accumulated Depreciation – Vehicles | $1,750.00 |
Depreciation is credited to the contra account, not to the asset itself, so original cost stays visible.
Equipment cost $5,700.00, has a salvage value of $500.00, and a 4-year life (straight-line). What are the annual depreciation, the accumulated depreciation after 3 year(s), and the book value at that point?
Annual $1,300.00; accumulated $3,900.00; book value $1,800.00.
Item 1 of 2
FixRight Appliance Repair bought a van on January 1 for $18,000.00. It expects to use it for 5 years with a salvage value of $0.00, using straight-line depreciation. Record depreciation for the year ended Dec 31, 2026.
Depreciation practice →Depreciation schedule (CSV) →
Original content. Figures are fictional; examples are generated and checked by our accounting engine. Updated 2026-10-29.