Equipment has to have depreciation accrued every year.
Tips
usage
Also functions as a verb ('to depreciate'). 折 here is zhé (reduce) - not shé (break) - and 旧 'old' captures the 'aging' idea. Common compounds: 折旧率 (depreciation rate), 累计折旧 (accumulated depreciation), 直线折旧法 (straight-line method).