Assuming no additions,replacements,or extraordinary repairs,the book value of any long-lived asset with a limited life is always less than or equal to its acquisition cost.

Question

Quizplus · Accepted Answer

This statement is true because book value of an asset is calculated by subtracting accumulated depreciation from its acquisition cost. As time passes, accumulated depreciation increases and reduces the book value of the asset. Since the accumulated depreciation cannot exceed the acquisition cost, the book value of the asset will always be less than or equal to its acquisition cost.

Assuming No Additions,replacements,or Extraordinary Repairs,the Book Value of Any Long-Lived