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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References in periodicals archive ?
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.
The price offered by the most promising purchaser, National Convenience Stores, would not yield this amount unless Colonial's tax obligations were based on depreciated cost instead of fair market value.
Replacement value insurance will tack on as much as 15% to your premium, but it's worth it: Cash value pays back only the depreciated cost of destroyed items--which won't be enough to replace them.
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 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.
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.
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.