The definition of depreciation is?

The definition of depreciation primarily refers to a reduction in the value of an asset over time, typically due to wear and tear, obsolescence, or age. It is a key concept in accounting and asset valuation, representing how the worth of a physical asset decreases in value as it is used or through other economic factors. In real estate or asset management, understanding depreciation is crucial for evaluating the value of an investment and for tax purposes, since businesses can often deduct depreciation to offset taxable income.

The other options do not align with the accepted definition of depreciation. Mortgages and foreclosures relate to financial instruments and processes rather than a measure of value change over time. Loss from scarcity refers to economic principles about supply and demand but does not pertain specifically to depreciation. A gain from cost suggests an increase in value rather than a loss, which is contrary to the very essence of what depreciation signifies.