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 ?
No provision for depreciation was made during the first-mentioned period on the theory, which the corporation insists is sound, that since no profits were made there was no available source from which to provide a reserve for depreciation.
By this I mean that any conservative owner (quite apart from its effect on deductions from gross income for income tax) in setting up a replacement fund would consider that there should be added to reserve for depreciation each year 4% of the cost of the building.
Instead of this Use this Reserve for inventory Allowance to reduce obsolescence inventory to market Reserve for depreciation Accumulated depreciation Reserve for doubtful Allowance for doubtful debts accounts Reserve for discontinued Estimated plant closing costs operations Reserve for environmental Estimated environmental cleanup costs costs Reserve for warranty Estimated warranty expenses Reserve for employee Accrued employee healthcare benefits expenses
It further fails to provide for a reserve for depreciation or the allocation of depreciation.
167 deduction between the trust and its income beneficiaries, based on the income allocable to each, is superseded if the trust's governing instrument (or local law) requires or permits the trustee to maintain a reserve for depreciation in any amount.
In the Uniform Principal and Income Act (1997), the trustee is given discretion to set up a reserve for depreciation that could prevent any wastage.
In the 1997 Uniform Principal and Income Act (section 503), a trustee is given discretion to set up a reserve for depreciation that can prevent any wastage of depreciation following income to a charitable recipient that is unable to utilize the deduction.