What is the formula for calculating straight line depreciation?

The formula for calculating straight-line depreciation is correctly identified as S = V0 - Dn, where S represents the salvage value of an asset after a certain time, V0 is the initial value or cost of the asset, D is the depreciation expense per time period, and n is the number of time periods the asset has been depreciated.

In straight-line depreciation, the asset's value is reduced by a constant amount each year, which is the total depreciation divided by the useful life of the asset. The salvage value is the residual value that the asset is expected to have at the end of its useful life. By subtracting the total depreciation (Dn) from the initial cost (V0), you accurately determine the asset's value over time as it depreciates. This method is straightforward and commonly used in accounting, providing a clear understanding of how the value of an asset decreases gradually.

The other provided choices do not represent the straight-line depreciation formula accurately. These options suggest different relationships between the asset's value and depreciation, which do not align with the principle of straight-line depreciation. Only the identified formula allows for the proper calculation of the asset's diminishing value over time.