What Is Depreciation Method

Depreciation is a method of allocating the cost of a physical asset over its useful life, taking into account how much its value has declined over time. For example, if you buy a delivery van that costs $100,000 that you expect to use for 5 years, you might have a depreciation expense of $20,000 in each of those 5 years. In the U.S., the IRS ...

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