depreciated cost

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Depreciated cost

In terms of economics: The measure of capital consumption during production, e.g., machine and equipment wear.
In terms of finance: The process of amortization of fixed assets (equipment) to spread the cost over the depreciable life of the assets.

Net Asset Value

In stocks and businesses, an expression of the underlying value of the company. That is, it is a statement of the value of the company's assets minus the value of its liabilities. One way of thinking about the net asset value is that it is the underlying value of a company, not the value dictated by the supply and demand of shares or its market capitalization. It is also called the book value.

depreciated cost

depreciated cost

See book value.

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For example, if the depreciated cost of the above-grade area was $84.
Where depreciated cost is used the profit and loss account will instead bear an annual depreciation charge.
Others have suggested that the appraiser prepare another cost approach for the residential improvements of each sale and then extract the net difference in the depreciated cost.
The money is there to pay us for the depreciated cost of the building if the deal doesn't go through.
The industry audit guide Audits of Stock Lite Insurance Companies supported carrying foreclosed assets at the lower of depreciated cost or market value, net of any encumbrances.
These firms used a variety of appraisal methods, including the depreciated cost method, the sales method and the income method, in reaching their conclusions.
The depreciated cost was approximately $461,000, and the gain on sale to be reported in the year ending September 30, 2008, will be approximately $3,500,000.
Bar B represents the depreciated reproduction cost after deducting the three components in the four-step method, namely, the physically depreciated cost of the existing defect item, the EXCC, and the controversial component-the replacement cost new (or used) of the substitute item.
The depreciated cost was approximately $3,235,000, resulting in a gain on sale to be reported for the year ending September 30, 2008 of approximately $3,450,000.
This four-step method always fails to reflect market realities since, while appropriately deducting a depreciated cost for the existing item, it recognizes only a zero value for the replacement item which has at least the same utility as the existing item and may produce even more cash flow.
The property's current book value is $909,500 which is its depreciated cost basis plus improvements.
However, in my area (semi-cold Indiana), it is obvious that expensive inground pools built with modest housing do not return market value commensurate with physically depreciated cost new.