The book value of a plant asset is always equal to its fair value.

Question

Quizplus · Accepted Answer

The book value of a plant asset represents its historical cost minus accumulated depreciation. Fair value, on the other hand, is the estimated value of the asset in the current market. These two values can be different depending on various factors such as market conditions, changes in technology, and wear and tear of the asset. Therefore, the book value of a plant asset is not always equal to its fair value.

The Book Value of a Plant Asset Is Always Equal