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Accumulated Depreciation Definition and Example

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File contains a real life example (from The Coca-Cola Company) of accumulated depreciation.

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File contains a real life example (from The Coca-Cola Company) of accumulated depreciation.

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Accumulated Depreciation

While it may seem like the accumulated depreciation amount is for the replacement cost of an asset, it is not. To an accountant, according to Generally Accepted Accounting Principles (GAAP), accumulated depreciation is an expense.

Accumulated depreciation is the allowed reduction of the carrying amount of the assets on the balance sheet to ...

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