Book Value Formula Depreciation Complete Guide

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book value formula depreciation. Net Book Value Original Asset Cost Accumulated Depreciation. The book value of an asset is how its shown on the business balance sheet.

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When it reaches the end of its useful life the NBV should be equal to its salvage value. NBV 100000 - 7000 x 5 years 65000 This means the net book value of the truck would be 65000 after five years. Determine the depreciation and the book value for each of the 5 year using the straight line method.

Depreciation Periodic reduction in the value of the asset amortized as per standards.

Depreciation Periodic reduction in the value of the asset amortized as per standards. Heres how to derive NBV using the above net book value formula. Assets Book Value Formula Total Value of an Asset Depreciation Other Expenses Directly Related to it. To calculate your monthly depreciation amount the formula is.