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 ?
31, 2008, deadline and that the taxpayer was entitled to take the accelerated depreciation allowance under the GO Zone Act of 2005.
Unless Congress extends the bonus depreciation allowance, it generally will not be available for property placed in service after 2012.
Businesses that qualify for the section 179 enhancement can also take advantage of the 50-percent depreciation allowance on property they do not expense under section 179.
Keywords: Asia, Indonesia, Sustainable Development, Income Distribution, Environmental Capital Depreciation Allowance, Gini Coefficient, Energy Consumption
The increased depreciation allowance applies to software, leasehold improvements, and certain equipment and real estate expenditures used in the active conduct of a trade or business.
After introducing the basic tax concepts, he provides chapters on structure of taxation of income, taxability of salary income, depreciation allowance, capital gains taxation, tax reliefs and tax incentives, corporate taxation and dividend income, assessment of income, and compliance and enforcement.
In 1986 Congress changed the rate of depreciation allowance for commercial real estate, and the same year a crisis in the savings and loan industry dried up the loans used to buy commercial real estate.
The bonus depreciation allowance passed in 2002 and increased in 2003 provides a sharp test of the theory.
Financing - The year-end expiration of the 50% special depreciation allowance for capital expenditures has had some effect, with 17% accelerating capital expenditures to take advantage of this tax provision.
A special first-year depreciation allowance of 50% for qualified property acquired after May 5, 2003.
Using the formula set forth in our article on bonus depreciation ("New Depreciation Allowance Creates Benefits and Questions, Part 2," Strategic Finance, September 2002), the definition of a luxury automobile now is a vehicle costing $17,850 or more [$10,710 = (0.
Growth incentives for business including a limited, 50 percent Special Depreciation Allowance for certain property and an increase in Section 179 expensing.