Question

The book value of an asset is computed as the asset's: a.cost less accumulated depreciation. b.fair...

The book value of an asset is computed as the asset's:

a.cost less accumulated depreciation.

b.fair value less residual value.

c.discounted value plus accumulated depreciation.

d.current market value less tax expense.

Business   Accounting   
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Homework Answers

Answer #1

Book value of an asset is the estimated monetary worth of the asset on the accounting books and balance sheet of the company. This book value may vary from the selling price of the asset in open market.

Book value or carrying value of assets is the difference between the purchase price and the total sum of depreciation expense recorded for the asset. Book value of depreciable asset is computed by subtracting accumulated depreciation from original cost of assets.

Hence option a. “Cost less accumulated depreciation.” is correct answer.

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