Example of Accumulated Depreciation. A company buys a machine for $200,000. It has a salvage value of $20,000 and a useful life of 10 years. In this example, we’ll use the straight-line method. To ...

Amortization and depreciation are accounting methods used to allocate the cost of assets over their useful lives. Amortization applies to intangible assets like patents and trademarks. Depreciation ...