Straight Line Depreciation Formula: An Essential Guide to Asset Valuation

The straight line depreciation formula calculates an asset’s yearly depreciation by subtracting the salvage value from the purchase price and dividing the result by the total number of useful years. It’s a common, uniform method for both tangible and intangible assets, ensuring a steady annual decrease in value that’s crucial for accurate financial reporting.

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ARV Real Estate Insights: Maximizing Investment Returns

ARV stands for After Repair Value in real estate, an estimate of a property’s worth post-renovation, essential for gauging investment profitability. The 70% rule guides investment decisions by considering the purchase price and repair costs, while calculating ARV involves analyzing comparable sales, repair expenses, and market trends.

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