Forest Grove Industries has long-lived tangible assets with a cost of $350,000;its Accumulated Depreciation account has a balance of $110,000.Which of the following statements is correct?
A)The carrying value of long-lived assets is $240,000.
B)The market value of long-lived assets is $350,000.
C)The carrying value of long-lived assets is $350,000.
D)The market value of long-lived assets is $460,000.

Question

Quizplus · Accepted Answer

Book value = Cost − Accumulated depreciation
= $350,000 − $110,000 = $240,000
Carrying value is the amount at which an asset or liability is reported ("carried")in the financial statements.It is also known as "net book value" or simply "book value." Since depreciation is an allocation method rather than a valuation method,book value is not the same as market or resale value.

Forest Grove Industries Has Long-Lived Tangible Assets with a Cost