The book value of a plant asset is defined as:

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The book value of a plant asset is calculated as the historical cost of the asset minus the accumulated depreciation expense recorded on the asset. This reflects the carrying value of the asset on the company's balance sheet. The historical cost of the asset is the original cost of acquiring or constructing it. The estimated residual value is the anticipated value that the asset will have at the end of its useful life, which is used to calculate depreciation expense. Current sales value and replacement cost are not used to calculate the book value of a plant asset.

The Book Value of a Plant Asset Is Defined As