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 ?
Less: Accumulated depreciation 2,892,956 83,076,434
* Debit the account for accumulated depreciation for the old asset.
12/31/19 43,845 37,444 Total (40 year life) 1,753,788 346,212 Journal Entry Needed for SFAS 143 Adoption (January 1, 2003) Asset 3788 (a) Accumulated depreciation 199,072 (b) Liability 51,131 Cumulative affect of CAP 151,730 (c) Assumptions: 1.
Should the disclosures relating to property, plant, equipment, and intangible assets and related accumulated depreciation, depletion, and amortization be required when interim financial statements are presented?
Subsequent right-of-use asset measurement: The carrying amount of the right-of-use asset at any point in time equals its initial measurement minus accumulated depreciation. As shown in Table 5, the book value of the right-of-use asset at December 31, 2017, will be $375,593, which is the $407,017 initial right-of-use asset measurement minus $31,424 accumulated depreciation.
Under the revaluation model, there are two available methods of accounting for accumulated depreciation:
Less: Accumulated depreciation 71,375,963 1,748,684
Prior to recapture, the depreciable base would be $5,000 and the accumulated depreciation through 2008 would have been $17,600 ($5,000 x 52% + $15,000 of Sec.
Book value is the current market value of the asset or its original cost minus its accumulated depreciation. These amounts are shown on the last prepared balance sheet.
The Browns' Tax Savings From Combining IRC sections 121 and 1031 Florida beach cottage Basis $ 200,000 Accumulated depreciation $ 42,000 Sales price $ 800,000 Closing costs $ 38,000 Gain from sale Sales price $ 800,000 Adjusted basis $(158,000) Closing costs $ (38,000) Realized gain $ 604,000 Excluded gain section 121 $ 500,000 Deferred gain section 1031 $ 104,000 Recognized gain $ -- Tax savings Excluded gain ($500,000 x 15%) $ 75,000 Sec.
Furniture, Fixtures and Equipment: Furniture, fixtures and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over estimated useful lives of five to ten years.
The capital assets are presented net of accumulated depreciation reduced by any outstanding amounts due on bonds, mortgages, notes or other debt associated with the purchase, construction, or improvement to capital assets.

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