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Depreciation & its Accounting

Define depreciation.
Systematic allocation of fixed asset cost over useful life due to wear, time, or obsolescence.
Is depreciation a cash expense?
No, depreciation is a non-cash expense; no actual cash outflow occurs.
Which assets are NOT depreciated?
Land (indefinite life); intangibles are amortised, not depreciated.
What is historical cost in depreciation?
Purchase price + freight + duties + installation + costs to bring asset to working condition.
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