Depreciation is a concept and a method that recognizes that some business assets become less valuable over time and provides a way to calculate and record the effects of this. Depreciation impacts a ...

If you recorded a $1 million expense this month for buying a factory or an office building, it might leave your ledger swimming in red ink. Depreciation lets you expense the purchase price over time ...

Depreciation is a fairly simple concept. When a business owner buys a fixed asset, that asset loses its value over time, and so its most current value must be accounted for on the company’s balance ...

Over time, the assets a company owns lose value, which is known as depreciation. As the value of these assets declines over time, the depreciated amount is recorded as an expense on the balance sheet.

Over time, the value of a company's capital assets decline. This is a normal phenomenon driven by wear and tear, obsolescence, and other factors. This depreciation in the asset's value must be ...

Every day, business managers make capital budget decisions -- choices about whether to invest in projects such as building a factory, upgrading machinery or investing in research and development. But ...

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line method. This can provide asset owners with potentially valuable tax ...

Depreciation determines the loss of value of an asset over its useful life. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take ...

If you own a rental property and want to take advantage of the tax breaks at your disposal, one thing you’ll definitely want to know is how to calculate depreciation. This nifty accounting trick ...

When teaching depreciation in Introduction to Accounting, faculty always cover a variety of different depreciation methods, including straight-line depreciation. Next time you teach this topic, build ...

Greg DePersio has 13+ years of professional experience in sales and SEO and 3+ years as a writer and editor. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...