Book value is computed as:
A)current market value less residual value.
B)cost less residual value.
C)current market value less accumulated depreciation.
D)cost less accumulated depreciation.

Question

Quizplus · Accepted Answer

Book value is calculated by subtracting the accumulated depreciation from the cost of the asset. This gives the net value of the asset as recorded in the books of accounts. Hence, option D (Cost less accumulated depreciation) is the correct choice.

Book Value Is Computed As