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Depreciation
is an accounting method that allocates the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.
Double-Declining-Balance Rate
A method of accelerated depreciation that doubles the rate at which an asset's value is reduced, resulting in higher depreciation expenses in the initial years of the asset's life.
Straight-Line Rate
The method of calculating equal depreciation expenses for an asset over its useful life.
Useful Life
The expected period over which an asset is anticipated to be economically usable by one or more users.
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