Depreciation on all assets is determined by using the straight-line-depreciation method. The cost of such assets is recovered through deductions for depreciation or amortization. EBITDA stands for earnings before interest, taxes, depreciation and amortization. Typical business expenses include salaries, utilities, depreciation of capital assets, and interest expense for loans. Net investment is gross investment minus depreciation. Journal entries can record unique items or recurring items such as depreciation or bond amortization. Tax depreciation is commonly calculated differently than depreciation for financial reporting. Many states allow different amounts for depreciation deductions. Otherwise, depreciation expense is charged against accumulated depreciation. However, many states impose different limits on certain deductions, especially depreciation of business assets. Composite life equals the total depreciable cost divided by the total depreciation per year. Adjustments are made for guaranteed payments, as well as for depreciation and other expenses. Capital allowances are in contrast with depreciation. "Net investment" deducts depreciation from gross investment. ACV is computed by subtracting depreciation from replacement cost.