1. straight-line depreciation method generally refers to the average life. The average fixed life method, also known as the straight-line method, is based on the average depreciation over the useful life of a fixed asset. The method calculates the same amount of depreciation each year, so if the asset is used in the same way each year, the straight-line method should be used. The straight-line method, also known as the average life method, is used for depreciation of fixed assets. The net salvage value should be considered and depreciated equally in subsequent years. The formula is: monthly depreciation = (original cost of the fixed asset - estimated net salvage value)/total life/12, so that the amount of depreciation is equal in all periods and will not be unequal. This is a very practical and simple formula.
2. Depreciation is calculated from the month following the month in which the fixed assets are put into use. Depreciation of fixed assets discontinued shall cease from the month following the month in which they are discontinued. Enterprises should be based on the nature and use of fixed assets, a reasonable determination of the estimated net residual value of fixed assets. Once determined, the estimated net residual value of fixed assets shall not be changed. Therefore, the Tax Law stipulates that depreciation of fixed assets should be provided by the straight-line method. Whether or not to consider the net salvage value is reasonably determined by the enterprise based on the nature and use of the fixed assets. Determine the estimated net salvage value of business premises, machinery and equipment and means of transportation.
3. The straight-line method, also known as the average life method, is a method of spreading depreciation of fixed assets evenly over each period based on an average calculation of expected useful lives. The amount of depreciation calculated in this way is equal in each period (year and month). Calculation method does not take into account the depreciation reserve, the formula is: depreciation rate of fixed assets = expected net salvage rate / expected useful life fixed life (years) depreciation rate of fixed assets = annual depreciation rate / 12 months, depreciation of fixed assets on a monthly basis; depreciation rate = the net value of the fixed assets the month above details the straight-line method of considering the value of depreciation, but also describes the straight-line method.
:Linear amortization method is used for the natural aging of fixed assets, leading to a reduction in production capacity and maintenance costs, and ultimately produce different economic benefits over different useful lives, but the average aging method does not take into account this objective situation. Therefore, the linear amortization method is justified only when the load on the fixed asset is the same over all periods and the depreciation expense is spread over all periods.