For example, ABC International buys a machine for $100,000, which it records in the Machinery fixed asset account. ABC estimates that the machine has a useful life of 10 years and will have no salvage value, so it charges $10,000 to depreciation expense per year for 10 years.he original cost of the asset is known as its gross cost, while the original cost of the asset, less the amount of accumulated depreciation and any impairment, is known as its net cost or carrying amount.