Long term assets: provide economic benefits, will last more than one year, recorded at cost. Dr asset: property, plant and equipment --> must be used in business (not normally for sale) Depreciation/amortization expense: allocating the cost of the asset to the accounting periods that benefit from its use (matching, methods. Salvage value (value at the end of the 6 years) Straight line: annual depreciation expense = (cost salvage value)/(useful life in years) = /year: acquired april 1st therefore 2010: owned 9 12 year. 2010 expense = 1500 x 9 12 = . Cost never changes but accumulated depreciation does: units of production, per unit charge = (cost salvage value)/(expected lifetime production) = (10 000 1. 000)/(30 000) =sh. 30/unit: therefore the 2010 depreciation expense is 3800 units x 0. 30 = 0. 3 140, entry (2010) 2010 expense = opening netbook value x rate: 9/12 = 9 months out of 12.