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Q. Illustrate accumulated depreciation account?
Micro Train place depreciation expense in its income statement and it reports accumulated depreciation in the balance sheet as a deduction from the related asset. The accumulated depreciation account is a contra asset account that demonstrates the total of all depreciation recorded on the asset from the date of acquisition up through the balance sheet date. A contra asset account is a deduction as of the asset to which it relates in the balance sheet. The use of a contra asset account is to decrease the original cost of the asset down to its remaining un-depreciated cost or book value.
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