The book value of an asset is equal to the
A) original purchase price minus an annual amortization expense.
B) depreciated value plus recaptured amortization.
C) original purchase price minus the accumulated amortization.
D) fair market value minus the accounting value.

Question

Quizplus · Accepted Answer

The book value of an asset is calculated by subtracting the accumulated amortization (or depreciation) from the original purchase price. So, option C is the correct answer. Option A is incorrect because not all assets are amortized. Option B is incorrect because recaptured amortization is not typically added back to the depreciated value. Option D is incorrect because fair market value is not directly related to the accounting/book value of an asset.

The Book Value of an Asset Is Equal to the