Straight-line method

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Straight-line method (hereinafter, the Method) is one of the methods that distribute one sum of money in several equal amounts in equal periods of time. In calculation of depreciation, the Method allocates an equal amount of depreciation over an asset's period of usefulness. In payments for bonds, the Method recognizes equal amounts of interest expense for each period when amortizing a bond discount or premium.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Straight-line method. Method that allocates an equal amount of depreciation over an asset's period of usefulness.
Straight-line method. A method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.

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