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accumulated depreciation
(redirected from depreciation allowance)

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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.



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It is also important to point out that depreciation limits on business vehicles are up to $8,000 higher for automobiles, trucks, and vans for which the special depreciation allowance applies.
To work out the NPV of the cost to buy, we need to calculate the tax savings on tax depreciation allowances (see table 1).
The second provision provides an additional 50 percent special depreciation allowance for property acquired and placed in service during calendar year 2008.
 
 
 
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