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.

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.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The book value of an asset is equal to its cost plus accumulated depreciation. True or...
The book value of an asset is equal to its cost plus accumulated depreciation. True or False
Accumulated depreciation represents a contra-asset that reduces the net book value of property, plant, and equipment....
Accumulated depreciation represents a contra-asset that reduces the net book value of property, plant, and equipment. True or False?
The book value of an asset when using double-declining-balance depreciation is always greater than the book...
The book value of an asset when using double-declining-balance depreciation is always greater than the book value from using straight-line depreciation, except at the beginning and the end of the asset's useful life, when it is the same. TRUE OR FALSE?
ACC312 Federal Taxation Several years ago, PTR purchased business equipment for $50,000. PTR's accumulated book depreciation...
ACC312 Federal Taxation Several years ago, PTR purchased business equipment for $50,000. PTR's accumulated book depreciation with respect to the equipment is $37,200, and its accumulated tax depreciation is $41,000. a. Compute PTR's book and tax basis in the equipment. b. Using a 35 percent tax rate, compute PTR's deferred tax asset or liability (identify which) resulting from the difference between accumulated book and tax depreciation. c. Compute PTR's book and tax gain if it sells the equipment for $14,750....
1) Depreciation computed under double−declining−balance will decrease each year because: A.the book value used in the...
1) Depreciation computed under double−declining−balance will decrease each year because: A.the book value used in the computation each year increases B.the rate used in the computation each year decreases C.the book value used in the computation each year decreases D.the rate used in the computation each year increases 2) At the end of an asset's useful life, the balance in Accumulated Depreciation will: A.be greater under units−of−production depreciation than under straight-line depreciation B. be a greater amount under straight-line depreciation...
1)A revision of an estimate which extends the asset's useful life: A.decreases depreciation expense and increases...
1)A revision of an estimate which extends the asset's useful life: A.decreases depreciation expense and increases owners' equity B.requires restatement of prior years' financial statements C.increases depreciation expense and decreases owners' equity D.is ignored until the last year of the asset's life 2)Treating a capital expenditure as an immediate expense: A.understates expenses and understates assets B.overstates assets and overstates owner's equity C.understates expenses and overstates owners' equity D.overstates expenses and understates net income 3)Which of the following would not be...
7) The book value of a plant asset is defined as: A) historical cost minus estimated...
7) The book value of a plant asset is defined as: A) historical cost minus estimated residual value. B) historical cost minus accumulated depreciation. C) current sales value minus historical cost. D) replacement cost minus accumulated depreciation. 8) On January 2, 2019, Konrad Corporation acquired equipment for $500,000. The estimated life of the equipment is 5 years or 18,000 hours. The estimated residual value is $14,000. If Konrad Corporation uses the units of production method of depreciation, what will be...
An asset's book value is $14,400 on January 1, Year 6. The asset is being depreciated...
An asset's book value is $14,400 on January 1, Year 6. The asset is being depreciated $200 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $9,300, the company should record: A. Neither a gain or loss is recognized on this type of transaction B. A gain on sale of 1,500 C. A loss on sale of 750 D. A gain on sale of 750 E. A loss on sale of 1,500
When a company sells a long-lived asset, stockholders' equity will change by the: amount of the...
When a company sells a long-lived asset, stockholders' equity will change by the: amount of the asset's book value. difference between the sales price and the asset's book value. amount of the asset's Accumulated Depreciation. amount of the sale.
Complete the following depreciation table using the straight-line method (assume the asset is purchased on January...
Complete the following depreciation table using the straight-line method (assume the asset is purchased on January 1st): Auto: $20,000 Residual value: $5,000 Estimated life: 5 years Depreciation Accumulated Year Cost Expense Depreciation Book Value 1 __________ ______________ _______________ ___________ 2 __________ ______________ _______________ ___________ 3 __________ ______________ _______________ ___________ 4 __________ ______________ _______________ ___________ 5 __________ ______________ _______________ ___________ 6 __________ ______________ _______________ ___________
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT