Book depreciation refers to the method that accountants and businesses use to systematically allocate the cost of tangible assets over their useful lives.
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.
Depreciation methods are accounting techniques used to allocate the cost of an asset over its useful life. These methods help businesses recognize the wearing out, aging, or decrease in value of an asset.
Economic life refers to the remaining period for which real estate improvements are expected to generate more rental income than their operating expenses.
Remaining economic life refers to the likely future period during which an asset is expected to generate a positive contribution to its value. It measures how long an asset will continue to be economically useful, considering various factors like wear, functional obsolescence, and market conditions.
Replacement reserve is a specific fund set aside from the net operating income to cover the eventual wear and tear of short-lived assets, such as carpeting, appliances, and other items that have a defined useful life.
Salvage value is the estimated value an asset will have at the end of its useful life. It is an important concept in accounting and real estate for calculating depreciation.
Straight-Line Depreciation is a method that applies equal annual reductions in the book value of a property. It is primarily used in accounting for replacement and tax purposes.
The Straight-Line Recapture Rate is a component of the capitalization rate that accounts for the annual loss in value of a wasting asset by assuming equal depreciation each year over the asset's useful life.
The Sum-of-Years'-Digits (SYD) depreciation method is a technique used in accounting to allocate the cost of an asset over its useful life in an accelerated manner. This method results in higher depreciation expenses in the earlier years and lower expenses in the later years.
