Question

The book value of an asset is defined as:

A) Cost Minus Salvage Value
B) Cost Minus Accumulated Depreciation
C) Cost Minus Salvage Value Minus Accumulated Depreciation
D) Estimated Fair Market Value

Answer 1

The book value of an asset is the cost minus accumulated depreciation. Option B.

Step-by-step explanation:

The book value of an asset is defined as the cost minus accumulated depreciation.

Book value represents the net value of an asset on a company's balance sheet. It is calculated by subtracting the accumulated depreciation from the original cost of the asset.

For example, if a company purchased a car for $20,000 and the accumulated depreciation after a year is $5,000, the book value of the car would be $15,000 ($20,000 - $5,000). So Option B is correct.