General purpose of this article is to Define and Discuss on Depreciation. Depreciation is the process of allocating the depreciable cost of the long‐lived asset, except for land and that is never depreciated, to expense within the asset’s estimated service life. Depreciable cost includes all costs important to acquire an asset and make it ready for use minus the asset’s expected salvage price, which is the asset’s worth at the conclusion of its service lifetime, usually the amount of your energy the asset is supposed to be used in the business.
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