Accounting Tools

MARCH 19, 2024

What is Accumulated Depletion? Accumulated depletion is the amount of depletion expense that has built up over time in relation to the use of a natural resource. The amount of accumulated depletion reported by a business will increase over time, as it extracts more resources from its designated asset.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 19, 2023

Accounting for Amortization The journal entry to record amortization for an intangible asset is: Debit Credit Amortization expense xxx Accumulated amortization xxx If an intangible asset has an unlimited life, then it is still subject to a periodic impairment test, which may result in a reduction of its book value.

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Accounting Tools

OCTOBER 20, 2023

The only situation in which the depreciation of land is allowed is when its value is being depleted through the removal of natural resources. Related Articles How to Account for the Sale of Land Is Land a Current Asset? Also, note that land is not depreciated, since it does not have a useful life. Why Land is Not Depreciated

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Accounting Tools

JANUARY 13, 2024

The only exception is land, which is not depreciated (since land is not depleted over time, with the exception of natural resources). Depreciation Journal Entries When you record depreciation, it is a debit to the Depreciation Expense account and a credit to the Accumulated Depreciation account. Is Depreciation a Source of Funds?

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Accounting Accounting Auditing Tax 40