what are the three items needed to calculate depreciation?
the depreciation amounts for each method to decide which one is best. Straight-Line Depreciation Method The straight-line method is the easiest way to calculate depreciation of an asset. Youâll need to know three things â the useful life of the asset, the salvage value of the asset (what itâs worth after its useful life has run out), and the cost of the asset. First subtract salvage value from the cost, and then divide by useful life. Using this method, depreciation will be the same each year.