Fixed assets go on the "long-term resources" section of a balance sheet, similar to accumulated depreciation -- a contra-asset account that reduces the worth of the corresponding fixed asset.

A method of depreciation based on asset usage, mostly used by manufacturers. Their machinery’s usage varies with customer demands. It is a more accurate representation of wear on the machinery or ...

Accumulated depreciation is the total amount of an asset’s value reduction up to one specific time. Accumulated depreciation is classified as a contra asset account in the general ledger.

To spread the cost of a capital asset, a corporate bookkeeper debits the depreciation expense account and credits the accumulated depreciation account. The last item is a contra-asset account that ...

Determining the monthly accumulated depreciation for an asset depends on the asset's useful lifespan as defined by the IRS, as well as which accounting method you choose to use.

Due to the fact that the accumulated straight-line depreciation amounts to $100,000 (the $800,000 initial price, divided by 40 years, multiplied by five years of use), the Internal Revenue Service ...

Understanding Fully Depreciated Assets An asset can reach full depreciation when its useful life expires or if an impairment charge is incurred against the original cost, though this is less ...

Key Points Depreciation spreads the cost of tangible assets over their useful life on income statements. Each year, $1,500 is recorded as a depreciation expense, reducing the asset's book value.

Personal Property Depreciation recapture of personal property refers to assets like equipment, machinery, and vehicles used in a business. Unlike real property, personal property usually has a ...