Depreciation

Depreciation is a measure of an asset over its useful life. Machinery for example, has an expected life time of usefulness, and when it is taken out of production, it may have some salvage value. Suppose an asset costs $100,000 and has a useful life of 10 years, and that it has a salvage value of $10,000. The $100,000 minus the $10,000 divided by the ten year span shows a depreciation of $9,000 per year

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