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accelerated depreciation

 - 3 dictionary results
Financial Dictionary

Accelerated Depreciation

Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset.

Investopedia Commentary

The straight-line depreciation method spreads the cost evenly over the life of an asset. On the other hand, a method of accelerated depreciation like the double declining balance (DDB) allows you to deduct far more in the first years after purchase.

Related Links

Appreciating Depreciation
Advanced Financial Statement Analysis

See also: Accounting, Asset, Depreciation, General Depreciation System

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Financial Dictionary

accelerated depreciation

An Accelerated Cost Recovery System method for writing off the cost of a capital asset by taking the largest deductions in the early years of the asset's life. The purpose of using accelerated depreciation is to delay the payment of taxes so that cash savings from the deferral can be reinvested to earn additional income. Compare straight-line depreciation.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Legal Dictionary

Main Entry: accelerated depreciation
see DEPRECIATION
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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