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khan_a_b · Sep 12, 2008, 06:47 PM

What is depriciation? How do we calculate it

MsMewiththat · Sep 12, 2008, 07:19 PM

Depreciation really varies on what the item is that you are calculating. In accounting, an expense recorded to allocate a tangible asset's cost over its useful life. I found this definition hope it helps:Depreciation is used in accounting to try to match the expense of an asset to the income that the asset helps the company earn. For example, if a company buys a piece of equipment for $1 million and expects it to have a useful life of 10 years, it will be depreciated over 10 years. Every accounting year, the company will expense $100,000 (assuming straight-line depreciation), which will be matched with the money that the equipment helps to make each year.