What is the book value of a tangible operating asset?
A) Acquisition cost minus the balance in accumulated depreciation.
B) Total depreciation that has been recorded on the asset to date.
C) Acquisition cost.
D) Current estimated market value.

Question

Quizplus · Accepted Answer

The book value of a tangible operating asset is the acquisition cost minus the balance in accumulated depreciation. This is because accumulated depreciation represents the portion of the asset's cost that has been allocated as an expense over its useful life, leaving only the remaining carrying value or book value on the balance sheet.

What Is the Book Value of a Tangible Operating Asset