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 ?
TEI has no comments on Item 302(d), relating to property, plant, and equipment and related accumulated depreciation, depletion, and amortization.
If a company owning the sample asset had not included any provision for retirement costs in its annual depreciation amounts, its accumulated depreciation balance at the end of year 4 would be $400,000 ($1 million original cost over 10 years x 4 years of depreciation).
OF THE 53 UTILITIES EXAMINED THAT HAVE NUCLEAR facilities, 57% record decommissioning costs as part of depreciation expense with a corresponding entry to accumulated depreciation.
13 billion, gross of accumulated depreciation, and was comprised of 11 master planned community projects, 14 urban infill land parcels and six waterfront land parcels located throughout the United States.
Governments will need capital-asset records that support the opening balances at transition of capital assets and accumulated depreciation and enable the calculation of depreciation for governmentwide reporting of general government capital assets.
Upon the sale of real property, accumulated depreciation is reversed for the purposes of calculating FFO.
1(h)(1)(B) and (h)(6) recapture the accumulated depreciation to the extent of straight-line depreciation at a 25% rate; only gain in excess of the initial predepreciation basis will qualify for the new 20% long-term capital gains rate.
Leverage, defined as debt divided by equity plus accumulated depreciation, was 1.

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