| Assets = Liabilities + Shareholder's Equity (Or Owner's Equity) |
| Contributed Capital |
| + Retained Earnings |
| Shareholder's Equity (or Owner's Equity) |
| Beginning RE |
| + Net Income |
| – Dividends |
| Ending RE |
| Revenues |
| – Expenses |
| Net Income |
| Depreciable Base = Cost - Salvage Value |
| Straight Line Depreciation Expense = Depreciable Base / Useful Life |
| Assets |
| – Accumulated Depreciation |
| Book Value |