depreciation reserve


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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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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.
References in periodicals archive ?
Going forward, FPL will replenish the depreciation reserve through tax savings.
When we closed the books for 1917 we found that depreciation had not been written off to an extent which we thought proper and we, therefore, set up a depreciation reserve, accretions to which have since been made from year to year.
The trust will escrow $12,500 each year as a depreciation reserve and thus will pay no tax on this amount.
In this case, the deduction is first allocated to the trustee to the extent that income is set aside for a depreciation reserve. Any part of the deduction in excess of the income set aside for the reserve is then apportioned between the trust and its income beneficiaries on the basis of the allocation of trust income.
Where asset records are maintained in pool accounts, the specific cost and depreciation reserve attributable to individual assets are either lost or may be recomputed only at substantial cost to the taxpayer.
Management's focus on O&M cost containment and the use of depreciation reserve surplus, as permitted in its last rate order, is expected to drive returns close to the upper end of the authorized ROE range of 9.6%-11.6%.
To deal with the deficit, the Depreciation Reserve Fund, which is earmarked for the maintenance of existing facilities and infrastructure, has been reduced by a third from what it was two years back.
167, or charge them against depreciation reserve (if they keep such an account).
The consultant had reportedly recommended that appropriation to the depreciation reserve fund should be part of the working expenses.
A taxpayer electing to use general asset accounts must maintain records that (1) identify the assets included in each general asset account (e.g., "General" Asset Account #1, all 1995 additions in asset class 00.11 for Salt Lake City facility), (2) establish the unadjusted depreciable basis and depreciation reserve of the general asset account and (3) reflect the amount realized on dispositions from each general asset account.