Depreciation calculations are an important part of the accounting process that help businesses accurately assess the value of their assets. When calculating depreciation, businesses must take into account factors like the asset’s age, estimated useful life, and the cost of replacing it. The goal is to ensure that the asset is being properly valued over time, considering its expected decline in value due to wear and tear. Depreciation calculations provide critical information for businesses when making decisions about their assets, including when to replace them.