# Understand how an asset's book value and asset's value is calculated on the time of sale.

May 5th, 2015
Studypool Tutor
Price: \$5 USD

Tutor description

Understand how an asset 's book value is determined and what kind of transaction would result when an asset is sold with definitions and examples in an understandable way.

Word Count: 211
Showing Page: 1/2
Question : Understand how an assets book value is determined and what kind of transaction would result when that asset is sold?Answer: The cost of a plant asset minus the total recorded depreciation, as shown by the Accumulated Depreciation account. The remaining un-depreciated cost is called book value of an asset. It is also known as carrying value. Example: On April 1, 2005, Matson Industries purchased new equipment at accost of \$325,000. The useful life of this equipment was estimated 5 years with a residual value of \$25,000. Assume that the equipment is sold at th

## Review from student

Studypool Student
" AMAZING as always! "

1829 tutors are online

### Other Documents

05/05/2015
05/05/2015
05/05/2015
05/05/2015

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors