The straight-line method is a simple and commonly used technique for calculating depreciation over time. It involves allocating an equal amount of depreciation to each year of an asset's useful life, resulting in a linear decrease in the asset's value. To apply the straight-line method, you subtract the salvage value from the cost basis of the asset and then divide that number by the number of years of useful life to determine the annual depreciation deduction
. This method is often used when an asset's value decreases steadily over time at around the same rate
. It is a popular choice for allocating the cost of fixed assets over their useful life, especially when the revenue generated by the asset is constant over time
