If the accumulated depreciation and residual value of an asset are correctly calculated, book value will equal the cost less the total accumulated depreciation.

Name: If the accumulated depreciation and residual value of an asset are correctly calculated, book value will equal the cost less the total accumulated depreciation.
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Question

Quizplus · Accepted Answer

The book value of an asset is calculated as the original cost of the asset minus the accumulated depreciation. Residual value is not included in this calculation.

If the Accumulated Depreciation and Residual Value of an Asset