I am reading The Interpretation of Financial Statements by Benjamin Graham. Ch. VI, Depreciation and Depletion contains the following wording:
When property is retired its gross value is deducted from the property account, and the depreciation accrued against it to date is taken out of the depreciation reserve. This explains why the depreciation reserve on the balance sheet does not increase each year by the full amount charged for depreciation against earnings.
Wouldn't the exact opposite be true? It seems like the amount expensed in a year will equal the increase to accumulated depreciation because they would be part of the same accounting entry. Thanks for any clarification!