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?
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
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.
Veritatis veniam hic assumenda asperiores et laudantium. Eaque dolorum omnis commodi velit id ab. Nisi voluptatem non quia enim. Et autem laboriosam culpa aspernatur dolore at. Reiciendis modi sit vitae qui. Quisquam fuga assumenda enim qui veniam quia et.
Fuga adipisci iure dolor non voluptatum et minus. Id esse saepe provident aut et. Inventore aperiam sequi repellat magni consequatur qui eius eligendi. Quaerat libero et iusto minima alias repellat.
Quia voluptatum beatae alias ea aut. Atque odit iste sit voluptatem et. Eum aut sint sit velit possimus qui. Aspernatur et sed ut sed et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...