Depreciation Schedule and Book Value Using the Straight Line Method Year Over the life of the asset, the total accumulated depreciation will equal the depreciation base of $11,800 unless the asset is sold or disposed of early. Accumulated depreciation represents the total asset depreciation taken from year to year.Īs the name suggests, accumulated depreciation accumulates the total asset depreciation from period to period.Īccumulated depreciation is a contra account on the balance sheet, where it is subtracted from the original cost of the asset to arrive at the asset book value.ĭuring the life of an asset, accumulated depreciation will equal the depreciation base of the asset, or the total cost of the asset less its estimated salvage value.įor example, when Sunny calculated depreciation for the company vehicle using the straight line depreciation method, he first subtracted the salvage value of $1,000 from the original cost of $12,800 to compute the depreciation base of $11,800.
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