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Simple English definitions for legal terms

depreciation reserve

Read a random definition: benefit of counsel

A quick definition of depreciation reserve:

A depreciation reserve is money that a business sets aside every year to replace expensive items that wear out over time. This helps the business prepare for the cost of replacing equipment that is essential to their operation but too expensive to replace all at once. For example, if a cruise company needs to replace a $100 million ship in 20 years and the ship can be sold for $10 million at the end of that time, the business would put $4.5 million into a reserve account each year to pay for the new ship.

A more thorough explanation:

A depreciation reserve is a fund set up by a business to replace expensive items that lose value over time. The business puts money into the reserve every year based on the amount the item depreciates and its salvage value. This allows the business to have the funds available to replace expensive equipment as it must be replaced.

Let's say a company buys a machine for $50,000 that will last for 10 years and can be sold for $5,000 at the end of its useful life. The company would allocate $4,500 each year into a reserve account to pay for the replacement of the machine ($50,000 - $5,000 = $45,000 / 10 = $4,500).

Another example is a cruise company that must replace its new ship, which cost $100,000,000, in twenty years and the ship can be salvaged for $10,000,000 at the end of that twenty-year period. The business would allocate $4,500,000 each year into a reserve account to pay for the new ship ($100,000,000 - $10,000,000 = $90,000,000 / 20 = $4,500,000).

These examples illustrate how a depreciation reserve works by allowing a business to slowly prepare for the cost of replacing expensive equipment over time, rather than having to pay for it all at once. This helps the business avoid financial strain and plan for the future.

depreciation | derelict

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2016 pushed the conservative party into populism irreversibly
Dkk
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Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
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