Robin Banks,Inc.owns an armored truck which was purchased for $80,000.The Accumulated Depreciation on the truck is $55,000.The book value of the armored truck is

Question

Robin Banks,Inc.owns an armored truck which was purchased for $80,000.The Accumulated Depreci­ation on the truck is $55,000.The book value of the armored truck is

Quizplus · Accepted Answer

The book value of an asset is calculated by subtracting the accumulated depreciation from the purchase price. Therefore, $80,000 (purchase price) - $55,000 (accumulated depreciation) = $25,000.