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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

accumulated depreciation

Also called accrued depreciation.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
No provision for depreciation was made during the first-mentioned period on the theory, which the corporation insists is sound, that since no profits were made there was no available source from which to provide a reserve for depreciation. During the latter period since profits were actually earned depreciation was written off at an annual rate based upon cost and probable life from date of purchase without in any way reflecting the failure to provide for depreciation in the earlier period.
Instead of this Use this Reserve for inventory Allowance to reduce obsolescence inventory to market Reserve for depreciation Accumulated depreciation Reserve for doubtful Allowance for doubtful debts accounts Reserve for discontinued Estimated plant closing costs operations Reserve for environmental Estimated environmental cleanup costs costs Reserve for warranty Estimated warranty expenses Reserve for employee Accrued employee healthcare benefits expenses [ILLUSTRATION OMITTED]
"Reserve for depreciation" is not a reserve, which would imply a fund to replace capital equipment.
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.
Yet another situation exists when the trust instrument or state law does not require a reserve for depreciation. In those instances, depreciation must follow the distribution of accounting income.