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What is a depreciable asset?

Harold Averkamp, CPA, MBA

Definition of Depreciable Asset

A depreciable asset has the following characteristics:

  • A tangible asset (other than land)
  • Has a useful life of more than a year
  • Is used in the business
  • The asset’s cost minus its salvage value is systematically allocated to depreciation expense over its useful life

Depreciable assets are reported on the balance sheet under the asset heading property, plant and equipment.

Examples of Depreciable Assets

Some examples of depreciable assets include the following:

  • Buildings and equipment for manufacturing, warehousing, and general office functions
  • Vehicles used in the business (trucks, automobiles)
  • Furniture and fixtures
  • Land improvements (parking lot, outdoor lighting)
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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on

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  • Adjusting Entries
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  • Balance Sheet
  • Income Statement
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  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
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