A depreciable asset's book value can never be less than its

Question

Quizplus · Accepted Answer

The book value of a depreciable asset represents the amount that has been depreciated from the asset's cost, so it cannot be less than the asset's salvage value, which is the expected value of the asset at the end of its useful life. Therefore, option D is the correct choice. Option A is incorrect because historical cost is the original cost of the asset and not the minimum book value. Option B is incorrect because fair market value is the value of the asset in an open and competitive market, which is not related to the asset's book value. Option C is incorrect because capitalized cost is the cost of acquiring and preparing an asset for use, which is not related to the minimum book value.

A Depreciable Asset's Book Value Can Never Be Less Than