The book value of equipment is equal to which of the following?
A)Cost of equipment plus accumulated depreciation.
B)Accumulated depreciation less depreciation expense.
C)Cost of equipment less accumulated depreciation.
D)Accumulated depreciation plus depreciation expense.

Question

Quizplus · Accepted Answer

The book value of equipment is equal to its cost less accumulated depreciation. Therefore, the correct choice is C. Choice A adds the cost of equipment and accumulated depreciation, which would give the gross amount of the equipment rather than its net value. Choice B subtracts the depreciation expense from the accumulated depreciation, which is not relevant when determining book value. Choice D adds accumulated depreciation and depreciation expense, which would overstate the amount of accumulated depreciation.

The Book Value of Equipment Is Equal to Which of the Following