Depreciation
=============



'Straight Line Formula'


 (Original Price - Salvage Value)
 --------------------------------
           Useful Life


* All assets are depreciated at 1/2 the yearly amount in the year of purchase.




Presentation on Balance Sheet:
===============================


FIXED ASSETS

Land						 100,000
Truck					40,000
Accumulated Depreciation: Truck	       (10,000)   30,000
					------




To record depreciation expense:

Depreciation Expense			100.00
    Accumulated Depreciation: Truck		100.00