Re:Detroit wants to be the first big American city to tax la...
by nprateem on Tuesday October 17, 2023 @03:15AM
(#37911606)
It's because the 'value' of something (eg a machine) is 'used up' over time until eg the machine eventually wears out and needs replacing.
Depreciation reflects that the asset's value is used up over time by allowing the owner to deduct part of its value each period to reflect the reduction in asset value in their financial statements.
Depreciation reflects that the asset's value is used up over time by allowing the owner to deduct part of its value each period to reflect the reduction in asset value in their financial statements.