An expense item set up to express the diminishing life expectancy and value of any equipment (including vehicles). Depreciation is set up over a fixed period of time based on current tax regulation.

Depreciation allows the company to spread the expense over the equipment’s life. This results in a more accurate picture of ...

Amortization and depreciation are accounting methods used to allocate the cost of assets over their useful lives.

Residual value is the estimated value of an asset at the end of its useful life. It's used to figure out things like the ...

This equipment has an extended life so that it is properly regarded as a fixed asset. When deciding when to purchase and register capital equipment on your books, there are two lines of thinking.

Also common is a variation of the four-year formula known as accelerated depreciation, which ATBS notes the vast majority of owner-operators are using today. It takes 77% of the equipment’s ...