How do you treat a depreciation on a balance sheet?
submitted by evans

Ug Lee

On the balance sheet, it's shown as accumulated depreciation, which is subtracted from the asset's original cost to show how much the asset is worth now.

Awful Waffle

Depreciation isn't directly shown as a line item on the balance sheet. Instead, it's recorded as accumulated depreciation, which is subtracted from the asset's original cost to show the net book value. So, on the balance sheet, you'll see the asset's cost minus accumulated depreciation under the property, plant, and equipment section.

can ya believe it

Depreciation is treated as a contra asset account called accumulated depreciation. It's deducted from the gross book value of the asset on the balance sheet, which give you the net book value. This way, the asset's carrying amount reflects wear and tear over time.

Rod Smith

On the balance sheet, instead of showing the full original price, you'd show the remaining value after accounting for depreciation, which is stored in an account called accumulated depreciation.