Depreciation Expense-Furniture and Fixtures
Depreciation Expense-Land Improvements
Some expenses such as depreciation expense, amortization expense and depletion expense are non-cash expenses.
The straight-line method allocates an equal portion of depreciation expense to each period of the asset's useful life.
The cost of depreciation and expired insurance may be recorded as adjustments at the end of the accounting period.
It is "gross" because it does not deduct any charge for the depreciation of capital used up in the course of this production.
The Comparison and Analysis of Fixed Assets Depreciation Costs between Standards of Accountancy and Tax Law;
an allowance for loss due to depreciation.
an amount periodically charged to expense or against revenue in compensation for depreciation of property.
Annual depreciation expense then is computed by applying this accelerated depreciation rate to the undepreciated cost (current book value) of the asset.
Depreciation Expense = Remaining Book Value X Accelerated Depreciation Rate
Depreciation Expense = Remaining Book Value * Accelerated Depreciation Rate
For example, depreciation on machinery used in production is properly considered part of overhead, while depreciation on cars used by the sales staff is not; the latter cost is a selling cost.
cost of reproducing physical property minus various allowances (especially depreciation).
The journal entry to record depreciation expense consists of a debit to Depreciation Expense and a credit to Accumulated Depreciation.
The delivery truck in our example has an estimated life of 5 years, so the depreciation expense each year is 1/5, or 2%, of the depreciable amount.
Understand the concept of" Depreciation" and the assumptions used to calculate depreciation.
the expense of maintaining property (e.g., paying property taxes and utilities and insurance); it does not include depreciation or the cost of financing or income taxes.