The amount of decrease in the value of property over a period of time due to use, wear, tear and obsolescence.
Accelerated Depreciation
Methods of depreciation that yield larger deductions early in life of an asset.
Declining Balance Method
The annual depreciation allowance is found by multiplying the undepreciated cost of the asset each year by a uniform rate up to double the straightline rate or 150 percent, as the case may be.
Original Cost Method
Amortization of asset based on its cost, less salvage.
Replacement Cost Method
The cost or other basis of the asset, less its estimated salvage value, if any, is determined first; then this amount is distributed in equal amounts over the period of the estimated useful life of the asset.