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 ?
* Take a special depreciation allowance. This is allowed for qualified property placed in service after September 10, 2001.
The present value of depreciation allowance is computed in Section 3.3 under the prevailing rules for this computation.
The property's basis and depreciation allowances for the year of purchase and subsequent years are reduced to reflect this new deduction.
If the primary use of MACRS property changes, the depreciation allowance for the year of change is determined as though the use had changed on the first day of the year of change.
Finally, the federal government allowed 5 years old cars to be imported under the personal baggage scheme instead of 3 years with depreciation allowance of 1 per cent on the value.
Finally the Federal Government allowed 5 years old cars to be imported under the personal baggage scheme instead of 3 years with depreciation allowance of 1% on the value.
Also of primary importance to the construction company owner is the fact that this bonus depreciation allowance is allowed for Alternative Minimum Tax purposes.
Corporate cash flow isn't the issue, it's getting firms to spend it, he says, though the depreciation allowance has caused a ripple effect throughout the industrial machinery sector as production has climbed and capacity utilization rates have risen.
Under the package approved by the ECC the import of second hand cars of more than 2 years has been banned and that the 25 per cent depreciation allowance on second hand cars has also been withdrawn.
In Pakistan the tax code are such that the firms in the tax holidays region are not allowed to claim or defer accelerated depreciation allowance but can claim normal depreciation allowance only after the expiry of tax holidays period.
Specifically, no deduction is allowed for (1) any amount paid for new buildings or for permanent improvements that increase the value of the property or (2) any amount spent restoring property or in making good the exhaustion of property for which a depreciation allowance has been made.
This will also allow importers to fully claim the 50 percent duty depreciation allowance, at 1 percent/ month, that was previously capped at 36 percent due to age restriction and hence further lower their cost.