Series 22: 2.2.1. Depreciation

2.2.1.  Depreciation

Property, plant, and equipment are assets that have a physical existence, such as buildings, airplanes, grapevines, railroad tracks, and office furniture. It is the nature of these tangible assets to deteriorate over time and require repair. Buildings decay, equipment wears out, and their resale value declines from year to year. They may also fall victim to obsolescence.

The reduction of an asset’s value over time is calle