The carrying amount of a long-lived asset is the difference between the
A) replacement cost of the asset and its cost.
B) cost of the asset and the amount of depreciation expense for the year.
C) cost of the asset and the accumulated depreciation to date.
D) proceeds received from the sale of the asset and its original cost.

Question

Quizplus · Accepted Answer

The carrying amount of a long-lived asset is calculated as the cost of the asset minus the accumulated depreciation to date. This reflects the asset's book value over time as it depreciates.

The Carrying Amount of a Long-Lived Asset Is the Difference