Net Book Value represents what on an asset?

Net Book Value represents what on an asset?

• A. Original Cost minus Accumulated Depreciation
• B. Market Value of the Asset
• C. Replacement Cost
• D. Salvage Value

Answer: (A)

Net Book Value is the amount the asset is carried at in the books. It equals the original cost minus the accumulated depreciation recognized to date (and any impairment losses, if applicable). This is the accounting value shown on the balance sheet, not the asset’s current market price, replacement cost, or its end-of-life salvage value. For example, an asset that cost 100 with 30 of depreciation has a net book value of 70.

Net Book Value is the amount the asset is carried at in the books. It equals the original cost minus the accumulated depreciation recognized to date (and any impairment losses, if applicable). This is the accounting value shown on the balance sheet, not the asset’s current market price, replacement cost, or its end-of-life salvage value. For example, an asset that cost 100 with 30 of depreciation has a net book value of 70.