The Book Value Straight Line Method is a formula used by companies to determine the depreciation of their fixed assets. It takes into account the cost of the asset, its estimated salvage value, and its useful life in terms of years. This method assumes that the value of the asset will depreciate evenly over time, with each year’s worth of depreciation being the same amount. In other words, it employs a straight-line approach towards determining the value of an asset as it reaches the end of its useful life. By utilizing this method, companies can accurately forecast their expenses and properly budget for future asset acquisitions.