Slide 9-15 Depreciation The allocation of the cost of a plant asset to expense in the periods in which services are received from the asset Balance Sheet Cost of Assets plant Plant and assets equipment Income Statement as the services are received Revenues. Expenses: Depreciation Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999?The McGraw-Hill Companies, Inc., 1999 Slide 9-15 Irwin/McGraw-Hill Depreciation The allocation of the cost of a plant asset to expense in the periods in which services are received from the asset. Cost of plant assets Balance Sheet Assets: Plant and equipment Income Statement Revenues: Expenses: Depreciation as the services are received