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Depreciation
The systematic allocation of an asset's cost over its useful life.
Useful Life
The estimated period that an asset is expected to be useful for the purpose it was acquired by the company.
Declining-Balance Method
Depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the useful life of the asset.
Accelerated Depreciation
A method of depreciation that allows larger depreciation expenses in the early years of an asset's life and smaller expenses in the later years.
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