FUNDED DEPRECIATION ACCOUNT Definition

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FUNDED DEPRECIATION ACCOUNT is a reserve setup to cover the replacement cost of those capital assets covered within the depreciation schedule.

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INTERPERIOD TAX ALLOCATION is the process of apportioning income taxes among accounting periods.

EQUITY RISK PREMIUM is a rate of return in addition to a risk-free rate to compensate for investing in equity instruments because they have a higher degree of probable risk than risk-free instruments (a component of the cost of equity capital or equity discount rate).

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