The book value of an asset is equal to the
A) asset's fair value less its historical cost.
B) blue book value relied on by secondary markets.
C) replacement cost of the asset.
D) asset's cost less accumulated depreciation.

Question

Quizplus · Accepted Answer

The book value of an asset is calculated by subtracting the accumulated depreciation from the asset's original cost. This represents the amount the company would receive if the asset was sold at its current market value. Therefore, the correct answer is D, asset's cost less accumulated depreciation.

The Book Value of an Asset Is Equal to the