The net depreciation expense a producing asset has incurred to date.

Also known as 'accrued depreciation.' This implies that the expense has been claimed, and is a term generally used in reference to accounting. It is calculated as a contra account to the fixed asset to arrive at book value. For example, consider a car bought on January 1, 2005 for $10,000 with a salvage value of $1,000 and a life of ten years. If a straight-line depreciation is applied the accumulated depreciation on December 31, 2008 would be $900 times four or $3600. Related Words

* Net current assets
* Accrued interest
* Contra account
* Fixed asset
* Book value
* Straight line depreciation