accumulated depreciation

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Accumulated Depreciation

The total depreciation on an asset, and not simply the depreciation that is added each year. One may calculate the accumulated depreciation by subtracting the original value of the asset from its current book value or by multiplying the yearly depreciation by the number of years the asset has been held.

accumulated depreciation

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.

References in periodicals archive ?
Areas of study include property service-life forecasting, depreciation estimation, and valuation of industrial property as of the following: Service Life Studies IOWA CURVES Survivor curves Net Salvage Studies Development of Depreciation Rates Assessment of Depreciation Reserves Estimation of Asset Retirement Obligations (SFAS 143 and FIN 47) Periodic studies of depreciation rates and practices are well overdue for NYPA so that the most current service life experience, net salvage trends, replacement activity, and technological and economic developments may be properly reflected in annual depreciation.
Just as business owners know it is good business practice to establish depreciation reserves for machinery, so, too, they recognize the necessity of accumulating funds to protect against the loss of management talent.
Another example of a change in permissible methods unaffected by the procedure would be a change from charging depreciation reserves with costs of removal and crediting reserves with salvage proceeds, deducting the costs of removal as an expense and then including salvage proceeds in taxable income.
For example, Sweezy/Magdoff, paying attention to an array of such sources, include the savings and capital gains of households, as well as the savings in corporated and unincorporated businesses, counting undistributed profits and depreciation reserves.
The rate increase is net of a $64 million annual credit related to the amortization of excess depreciation reserves that will expire on Dec.