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Depreciation
The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption or loss of value over time.
Straight-line Method
A depreciation method that allocates an equal amount of the asset's cost to each accounting period over its expected useful life.
Book Value
The net value of a company's assets as recorded on the balance sheet, deducting liabilities, indicating the shareholder equity.
Residual Value
The projected worth of an asset upon reaching the conclusion of its service period.
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