accumulated depreciation

At any time book value equals original cost minus accumulated depreciation.

The net value we're looking at here backs out the accumulated depreciation the company has charged over the years for tax purposes.

In the end, the sum of accumulated depreciation and scrap value equals the original cost.

Debit the difference between the two to accumulated depreciation.

Tangible assets are stated at cost or valuation less accumulated depreciation.

Accumulated depreciation is shown in the face of the balance sheet or in the notes.

Accountants use the purchase price and subtract the accumulated depreciation in order to value the item on a balance sheet.

"Accumulated depreciation" is a contra-asset account used to record asset depreciation.

The balance sheet valuation for an asset is the asset's cost basis minus accumulated depreciation.

Asset costs and accumulated depreciation were tracked by "vintage accounts" consisting of all assets within a class acquired in a particular tax year.

Otherwise, depreciation expense is charged against accumulated depreciation.

Examples are accumulated depreciation against equipment, and allowance for bad debts against long-term notes receivable.

Accumulated depreciation is known as a contra account, because it separately shows a negative amount that is directly associated with another account.

Without an accumulated depreciation account on the balance sheet, depreciation expense is usually charged against the relevant asset directly.

Debit depreciation expense and credit accumulated depreciation.

Taxpayers may track the basis and accumulated depreciation of assets individually or in vintage accounts, as in the old ADR system.

Debit Depreciation Expense and credit Accumulated Depreciation.

Showing accumulated depreciation separately on the balance sheet has the effect of preserving the historical cost of assets on the balance sheet.

Answer guide: These are alternative terms which are often used inter changeably to describe the figure arrived at after taking the accumulated depreciation away from the historic cost.

Office equipment and vehicles are stated at cost less accumulated depreciation, which is provided so as to write-off those assets over their estimated useful lives, ranging from four to 15 years.

Book value is often used interchangeably with "net book value" or "carrying value," which is the original acquisition cost less accumulated depreciation, depletion or amortization.

If neither fair value is determinable, the cost of the PP&E acquired is the cost recorded for the PP&E surrendered net of any accumulated depreciation or amortization.

In respect of depreciation disclose: accumulated depreciation at beginning of year and at balance sheet date charge for year and provision for diminution in value adjustments for disposals other adjustments.

While depreciation expense is recorded on the income statement of a business, its impact is generally recorded in a separate account and disclosed on the balance sheet as accumulated depreciation, under fixed assets, according to most accounting principles.

If Section 1245 or Section 1250 property is held one year or less, any gain is considered a short-term capital gain, and all Accumulated Depreciation that may have been taken is recaptured and taxed at ordinary income tax rates.