WebThe _____ life of a plant asset is the length of time it is productively used in a company’s operations. USEFUL. The amount by which a company’s value exceeds the value of its individual assets and liabilities is called (GOODWILL) The asset’s acquisition cost less its accumulated depreciation is called: BOOK VALUE WebThe book value of a plant asset is:_____. A. the fair market value of the asset at a balance sheet date. B. the asset's acquisition cost less the total related depreciation recorded to …
ACCT 2301 Chapter 8 SB - Homework assignment - Studocu
WebJul 20, 2024 · The book value of an asset is an accounting calculation that measures the impact of depreciation on an asset's value. Businesses use the book value of an asset to offset some of their profits, therefore reducing their taxes. WebIt should be booked as a plant asset, and if it is practically feasible to estimate the useful life, it should be depreciated. Buildings – are one of the most common examples of plant assets or fixed assets. They can be either purchased or taken on lease , depending upon the fund availability with the company. cosco shipping line ticket
Book Value: Definition, Meaning, Formula, and Examples
WebMar 7, 2024 · Carrying value or book value is the value of an asset according to the figures shown (carried) in a company's balance sheet. Carrying value is calculated as the original cost of the asset less any depreciation, amortization, or impairment costs. Formula to Calculate Carrying or Book Value WebMay 25, 2011 · Book value (also carrying value) is an accounting term used to account for the effect of depreciation on an asset. While small assets are simply held on the books at … WebMar 7, 2024 · In many cases, plant assets are sold rather than disposed of for no value in return. An asset can be sold during its useful life when it has a positive book value or at the end of its life when it is fully depreciated. In either situation, a gain or loss will usually result. cosco shipping line website