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| Definitions by InvestorWords.com |
| What is...? |
| depreciation The allocation of the cost of an asset over a period of time for accounting and tax purposes. Also, a decline in the value of a property due to general wear and tear or obsolescence; opposite of appreciation. see also accelerated depreciation, declining balance method, Accelerated Cost Recovery System, Modified ACRS, double-declining balance depreciation method, Net Domestic Product, pre-depreciation profit, straight line depreciation, Sum-of-the-Years'-Digits Method. |
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