![]() ![]() In contrast, the asset’s original cost will be less than the amount of accumulated depreciation, and any impairment is also known as its net cost or even carrying the amount. The original cost of the asset is also known as its gross cost. There will increase the amount of accumulated depreciation for an asset over time as a depreciation keeps continuing to be charged against the asset. ![]() It means that it appears on the balance sheet as a deduction from the gross amount of fixed assets as it is reported. The accumulated depreciation account is also an asset account with a credit balance known as a contra asset account. Accumulated depreciation is an example of the total depreciation for a fixed asset that has been charged for the expenses since that asset was acquired and was made available for use.
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