When the cost of equipment is divided by its estimated useful life, the result is referred to as

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The result of dividing the cost of equipment by its estimated useful life is referred to as Depreciation expense. This is because depreciation expense represents the amount by which an asset's value decreases over time due to wear and tear or obsolescence. It is a way of allocating the cost of an asset over its useful life. Book value refers to the value of an asset on the balance sheet, which is calculated as its original cost minus accumulated depreciation. Accumulated depreciation is the total amount of depreciation expense that has been recognized over the life of an asset. Carrying value is the same as book value.

When the Cost of Equipment Is Divided by Its Estimated