accumulated depreciation

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The total amount of depreciation that has been recorded for an asset since its date of acquisition. For example, a computer with a 5-year estimated life that was purchased for $2,000 would have accumulated depreciation of $800 [( ^$2,000/₅ ) × 2] and a book value of $1,200 ($2,000 - $800) after 2 years of straight-line depreciation. Also called depreciation reserve.

accumulated depreciation

Also called accrued depreciation.

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book value
depreciation

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For example, a computer with a 5-year estimated life that was purchased for $2,000 would have accumulated depreciation of $800 [(

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