A _____ describes the difference between the original acquisition cost of capital assets and the amount of depreciation expense that has been recognized to date.
A) fair market value
B) disposal value
C) book value
D) replacement value

Question

Quizplus · Accepted Answer

Book value is the difference between the original acquisition cost of capital assets and the amount of depreciation expense recognized to date. This represents the current value of the asset on the company's balance sheet. Fair market value represents the price that would be received to sell the asset, disposal value represents the expected proceeds from selling an asset after it has been fully depreciated, and replacement value represents the cost of replacing the asset with a similar one.

A _____ Describes the Difference Between the Original Acquisition Cost