Identify the asset’s original cost
Determine the asset’s useful life
Determine the depreciation method used
Find the annual depreciation expense
Multiply annual depreciation by the number of years used
Subtract any salvage value if the method requires it
Add all yearly depreciation amounts together
Use the formula: Accumulated Depreciation = Total Depreciation Expense to Date
Check the asset’s contra-asset account balance in the general ledger
Verify the result against the fixed asset schedule