The formula for calculating straight-line depreciation is:

To calculate straight-line depreciation, you can use the following formula:

$\text{Depreciation Expense} = \frac{\text{Cost of Asset} - \text{Salvage Value}}{\text{Useful Life of the Asset}}$

Explanation:

• Cost of Asset: The initial purchase price or cost of the asset.
• Salvage Value: The estimated residual value of the asset at the end of its useful life.
• Useful Life of the Asset: The period over which the asset is expected to be used by the business.

This formula provides a consistent depreciation expense each year over the asset's useful life.