Straight-Line Depreciation Schedule

The depreciation for the first and last year of an asset’s life is usually different than for the middle year. A convention is employed so that a full year’s depreciation is not taken for the first year. Common conventions are half-year, mid-month, and mid-quarter. For the half-year convention, the asset is assumed to have been purchased at the halfway point of the year; consequently, one half of a normal year’s depreciation is recorded for that year.