The carrying value of a depreciable asset purchased 3 years ago equals
A)original cost minus depreciation expense for the current period.
B)original cost minus accumulated depreciation.
C)the estimated cost to replace the asset at today's price.
D)the estimated amount that the asset could be sold for in today's market.

Question

Quizplus · Accepted Answer

The carrying value of a depreciable asset is the original cost of the asset minus the accumulated depreciation recorded since the asset was acquired. Therefore, option B, original cost minus accumulated depreciation, is the correct choice. Option A is incorrect because it only takes into account the depreciation for the current period, instead of the accumulated depreciation. Option C is incorrect because it refers to the replacement cost, which is not the same as the carrying value. Option D is incorrect because it refers to the market value, which is not necessarily the same as the carrying value.

The Carrying Value of a Depreciable Asset Purchased 3 Years