Cost recovery refers to the deduction of a portion of the cost of an asset, used in a business or for the production of income, over its useful life through depreciation, amortization, or depletion. The recovery of the cost of tangible property is through depreciation, whereas the recovery ...
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Thecostofaplantassetminusthetotalrecordeddepreciation,asshownbytheAccumulatedDepreciationaccount.Theremainingundepreciatedcostisalsoknownascarryingvalue.账面价值：等于厂场资产的成本减去已记录的折旧总额，即累计折旧账户中所显示的数额。剩余的未折旧成本也叫做帐面价值。5.Capitalexpenditure(p.511)Acostincurredtoacquire...
You also have to recapture a Section 179 deduction if the percentage of business use drops to 50% or less for any year during the property's recovery period. This is done by treating a portion of the gain as ordinary income and taxing it using the ordinary inco...
Salvage value is usually an estimate. You can also use zero as the asset’s salvage value—especially if you anticipate using the asset for a long time. Divided by the asset cost: this includes all costs for acquiring the asset, including sales tax, transportation, set-up, and training....
Straight-line depreciation spreads thecost of an assetevenly over the time it will be used, also known as its "useful life." It requires only three inputs to calculate: asset cost, useful life and estimated salvage value — meaning, how much the asset is likely to be worth at the end ...
It's the simplest method but also the slowest, so it's rarely used. For example: You buy a copy machine for $1,600 at the end of March. Assuming the machine has a salvage value of $400, you can depreciate $1,200 of the cost over the life of the copier. A copy machine is con...
Bonus depreciation is also known as the additional first-year depreciation deduction. Key Takeaways Bonus depreciation allows businesses to deduct a large percentage of the cost of eligible purchases in the year when they acquire them, rather than depreciating them evenly over a period of years. ...
The two accounting approaches also differ in how salvage value is used, whether expensing is accelerated, and how each is shown on the financial statements. Amortization Amortizationis the accounting practice of spreading the cost of an intangible asset over its useful life. Intangible assets aren'...