23 What is the formula to compute the book value of an asset

23. What is the formula to compute the book value of an asset? A. The fair value of the asset if the asset is sold B. The cost of the asset less its accumulated depreciation. C. The cost of the asset minus the asset\'s residual value. D. The cost at which the asset was purchased

Solution

Answer

B ) the cost of the asset less its accumulated depreciation

the cost of the assets represent its historical cost and for arriving at the book value of assets and the accumulated depreciation is subtracted from the cost of asset and residual value is callculated for arriving at the depreciation value