Track the total amount of an asset's cost that has been allocated to depreciation expense since the asset was put into use.
Asset Parameters
Depreciation Record
Accumulated Depreciation$13,500After 3 years
Book Value$36,500
Annual Amt$4,500
Depreciation Schedule (Straight-Line)
About this calculator
Overview
Track the total amount of an asset's cost that has been allocated to depreciation expense since the asset was put into use.
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Pro Tips
What is Accumulated Depreciation?: It is the cumulative total of depreciation expense recorded for an asset since its purchase. It is a contra-asset account, meaning it reduces the gross price of fix assets on the balance sheet.
How does Straight-Line depreciation work?: It is the simplest method: (Cost - Salvage Value) / Useful Life. This resulting amount is subtracted every year equally.
What is Salvage Value?: Salvage value is the estimated value of an asset at the end of its useful life.
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Fun Facts
"Accumulated depreciation can never exceed the asset's original cost."
"Land is one of the few tangible assets that is never depreciated because it's considered to have an indefinite useful life."
"Depreciation is a non-cash expense; it reduces reported profit but doesn't involve an actual cash outflow each year."
