The book value of a plant asset is the difference between the
A) replacement cost of the asset and its historical cost.
B) cost of the asset and the amount of depreciation expense for the year.
C) cost of the asset and the accumulated depreciation to date.
D) proceeds received from the sale of the asset and its original cost.

Question

Quizplus · Accepted Answer

Book value is the original cost of an asset minus any accumulated depreciation. Therefore, the correct answer is C which states that the book value of a plant asset is the difference between the cost of the asset and the accumulated depreciation to date.

The Book Value of a Plant Asset Is the Difference