The amount of depreciation in 3 years would be 2000.
Depreciation formula = cost of asset/ life of asset
= $10,000/5
= $2000
Depreciation amount in 3 years will be = $2000*3 = $6000
Depreciation is an accounting method for allocating the cost of a tangible or physical asset over its useful life. Depreciation is a measure of how much of an asset's value has been consumed. It enables businesses to generate revenue from assets they own by paying for them over time.
The immediate cost of ownership is significantly reduced because companies do not have to account for them entirely in the year the assets are purchased. Accounting for depreciation incorrectly can have a significant impact on a company's profits. Long-term assets can also be depreciated for tax and accounting purposes.
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