The book value of a plant asset is the difference between the

Question

Quizplus · Accepted Answer

The book value of a plant asset is calculated by subtracting the accumulated depreciation from the original cost of the asset. Therefore, the correct answer is C. Choice A is incorrect because replacement cost is not relevant in calculating book value. Choice B is incorrect because it only takes into account a single year's depreciation expense, not the total accumulated depreciation. Choice D is incorrect because it is referring to the proceeds received from the sale of the asset, not the current book value.

The Book Value of a Plant Asset Is the Difference