While calculating the carrying value of a building, its accumulated depreciation is:
A) not taken into consideration.
B) subtracted from the building's cost.
C) added to the building's cost.
D) subtracted from the fair market value of the building.

Question

Quizplus · Accepted Answer

To calculate the carrying value of a building, its accumulated depreciation is subtracted from the building's cost. This is because accumulated depreciation represents the portion of the building's cost that has been used up or consumed over time.

While Calculating the Carrying Value of a Building, Its Accumulated