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Business Definition for: accumulated depreciation
accumulated depreciation
sum of depreciation charges taken to date on a fixed asset. Accumulated depreciation is a contra account to the fixed asset to arrive at book value . For example, on 1/1/2004 an auto is bought costing $10,000, with a salvage value of $1000 and a life of 10 years. Using straight-line depreciation the accumulated depreciation on 12/31/2007 would be $3600 ($900 x 4).
accumulated depreciation
in accounting, the amount of depreciation expense that has been claimed to date. Same as accrued depreciation.
See also adjusted basis or adjusted tax basisaccumulated depreciation
in accounting, the amount of depreciation expense that has been claimed to date. Same as accrued depreciation.
Example: A building was bought for $100,000. The annual straight-line depreciation expense is $2,500. The accumulated depreciation in 3 years is $7,500.
See also adjusted tax basis
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
