Accumulated depreciation is used to calculate an asset's net book value, which is the value of an asset carried on the balance sheet. The formula for net book value is the cost of the asset minus ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Vikki Velasquez is a researcher and writer who has managed, coordinated ...

Depreciation reflects asset value loss over time, affecting financial statements. Straight-line method spreads depreciation evenly, while accelerated front-loads expenses. Understanding ...