Enter the values in the following formula: Motorcycle Cost – Salvage Value / Estimated Useful Life = Annual Depreciation Value. Example: $ 12,500 – $ 1,875 / 8 = $ 1,328 per year.
Multiply the value you calculated in Step 2 by the number of years since you purchased the motorcycle. Then subtract that value from the purchase value of the motorcycle to get the depreciated value. Example: $ 12,500 – (5 years x $ 1,328) = $ 5,860.