e property and equipment footnote from the Deere & Company Equipment and Operations segment follows. operty and Depreciation A summary of property and equipment at October 31 follows. Useful Lives operty and Equipment ($ millions) (Years) and ildings and building equipment achinery and equipment es, patterns, tools, etc other instruction in progress Total at cost s accumulated depreciation Total weighted averages 23 11 2 en 8 2015 2014 $120 $114 3,682 3,037 5,721 5,089 1,567 1,552 875 889 345 530 12,304 11,217 5,846 5,694 $6,458 $5,523
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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