The book value of an asset is equal to the

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The book value of an asset is equal to the original purchase price of the asset minus the accumulated depreciation. This is because depreciation is the method used to allocate the cost of a tangible asset over its useful life. The accumulated depreciation is the total depreciation expense charged against the asset since it was first acquired. Subtracting this from the original purchase price gives the book value of the asset, which represents its net value on the balance sheet.

The Book Value of an Asset Is Equal to the