Depreciation expense can be a big portion of a company’s total expense. And since expenses decrease income, it affects the overall value of a company. Understanding what it is and the methods can help ...

Accumulated depreciation is the sum of an asset’s depreciation expense. It’s calculated from the start of its use to a specific date. It’s also a contra-asset account. That means it decreases the ...

Depreciation is an accounting and tax principle that acknowledges the useful life of a physical, long-term asset, which is an asset with a life span exceeding 12 months, and accounts for wear and tear ...

Learn how salvage value impacts depreciation calculations, methods for determining value, and its importance in financial ...

Amortization and depreciation are accounting methods used to allocate the cost of assets over their useful lives. Amortization applies to intangible assets like patents and trademarks. Depreciation ...

Depreciation is a common accounting concept that helps adjust the value of a deteriorating asset over time as it becomes less efficient. A business can depreciate an asset with an expected useful life ...

When a business acquires an asset to be used in its operations, the cost of the asset is generally not expensed all at once. Rather, the cost is depreciated over a period of time that depends on the ...

There are dollar limits on the depreciation deductions (including deductions under the IRC §179 expensing election) that can be claimed with respect to passenger automobiles. That limit is adjusted ...

Bonus depreciation in Sec. 168(k) allows an additional first-year depreciation deduction in the placed-in-service year of qualified property. Legislation through the years has modified the bonus ...

Discover what net investment means, how it's calculated, and its impact. Learn the formula and see examples to better ...