Straight-line depreciation involves reporting the same amount of depreciation expense each year. (If you were to draw the graph of the expense over time, it would form a straight horizontal line ...

Using the straight line method, you would depreciate its value by $200 every year ($2,000 divided by 10 years). That's how you depreciate the costs of a long-lived tangible asset, ...

The straight-line method is one of the simplest ways to determine how much value an asset loses over time. The challenge, though, is determining how much to expense.

More on Straight line graphs. Find out more by working through a topic. WATCH: How to draw a graph of a linear equation. count. 2 of 8. Travel graphs. count. 3 of 8.

Straight-line depreciation is an expense, so decreases net income. For example, if your small business has $500 in annual straight-line depreciation expenses, your net income is reduced by $500 ...

As IRS Publication 550 states, for bonds issued after Sept. 27, 1985, taxpayers must amortize bond premium using the constant-yield method, which differs from the straight-line method.

An example of finding interest expense with the straight-line method. For example, say that a company wants to issue a 10-year bond for $10 million at a 5% annual rate.