20% straight-line amortization meaning
Does that mean the asset has 5 years useful life; so it means every year 20% of their residual value is depreciated?
Does that mean the asset has 5 years useful life; so it means every year 20% of their residual value is depreciated?
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5 year useful life
yearly amort = cost-residual value/5
It's not 20% of the residual value each year that is depreciated, it's 20% of the initial book value that is depreciated every year.
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