Summit Equipment — Depreciation

Three ways to spread one cost

Summit Equipment Co. buys a piece of equipment for $25,000 with an 8-year useful life — placed in service July 1, so Year 1 gets only a half-year of depreciation under every method. Straight-Line, Declining-Balance, and Units-of-Production all allocate the same $25,000 across the asset's life, just on different schedules.

Straight-Line: Depreciation = (Cost − Salvage Value) ÷ Useful Life. The simplest method — it books the exact same expense every year.

Using the calculator

1. Set Purchase Price, Scrap Value, and Useful Life once in the shared inputs block.
2. All three method tables — each with Period / Opening / Expense / Closing columns — recompute from those same three numbers.
3. Use the Total Check column to confirm total depreciation equals Cost minus Salvage Value (holds exactly for straight-line and units-of-production).