Businesses use depreciation to determine the spread-out cost of an asset over its entire span of usefulness, as noted by Investopedia. For example, if an asset remains useful for 10 years, the company calculates deprecia... More »

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Straight-line and activity, or unit of production, depreciation are some of the methods by which accountants calculate depreciation, notes SFGate. Business owners use depreciation of tangible assets such as computers, ma... More »

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An IRS depreciation calculator uses formulas to determine the correct depreciation of property for tax purposes. The Internal Revenue Service advises that investment property and businesses that were acquired or began op... More »

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To calculate depreciation using the sum of the years' digits, divide the undepreciated useful life of the asset by the sum of the years' digits, and then multiply the result by the depreciable amount. If you know the use... More »

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While not truly an asset, accumulated depreciation is listed on the company's balance sheet as an asset account and carries a credit balance. Known as a contra asset account, it reduces the overall value of the assets on... More »

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Accumulated depreciation is considered a contra asset, appearing as a negative balance underneath the asset to which it is assigned in the asset section on the balance sheet. However, accumulated depreciation cannot be c... More »

Net fixed assets are calculated with the following formula: fixed asset purchase price + additions to existing assets - accumulated depreciation - accumulated asset impairment - liabilities associated with the fixed asse... More »