An electric car company purchases machinery for $700 000 on January 1st. The machinery is expected to last 4 years have a residual value of $50 000. The company is planning to depreciate it on an accelerated basis of $300 000 in Year 1, $200 000 in Year 2, $100 000 in Year 3, and $50 000 in Year 4. 

 What type of account is accumulated depreciation? Is it an asset, liability or something else? 

What are the characteristics of such accounts? Please describe other examples of accounts that are similar to accumulated depreciation?