In finance and real estate, capitalization is the process of deriving a present value for future income through a capitalization rate. In accounting, it involves setting up an asset on financial records to be depreciated over its useful life rather than expensed immediately.
Depreciable life is the time period over which the cost of an asset can be spread for tax or appraisal purposes, reflecting either the recovery of investment or the estimated useful economic life of an asset.
Depreciation (Accounting) refers to the method of allocating the cost of a tangible asset over its useful life. It is an accounting technique used to account for the gradual wear and tear, aging, or decrease in the utility of an asset.
