accumulated depreciation

(redirected from Reserve for Depreciation)

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 ?
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167 deduction between the trust and its income beneficiaries, based on the income allocable to each, is superseded if the trust's governing instrument (or local law) requires or permits the trustee to maintain a reserve for depreciation in any amount.
Use and occupancy insurance is maintained, as well as a reserve for depreciation, replacement, and operations.