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Depreciation Workshop

Level 1 of 10 · Calculate straight-line depreciation, accumulated depreciation and carrying amount.

The delivery van

Delivery van · cost $12,000 · residual $2,000 · useful life 5 years · available for use from 1 April, the first day of the year.

Original cost

$12,000

Accumulated depreciation

$0

Carrying amount

$12,000

The asset illustration never changes — depreciation allocates cost, it doesn't measure wear or market value.

Timeline

Depreciation for year 1

Annual straight-line depreciation = (cost − residual value) ÷ useful life.

Straight-line method, whole months, no GST or income tax. Residual value and useful life are estimates set by the business.