What is a Book Value?
In accounting, book value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset.
Book Value Of Cars In South Africa
Toyota Fortuner 2.4 GD-6 Raised Body
BMW 1 Series 118i 5 Door Auto (F20)
How do you calculate the book value of a car?
To calculate the book value of an item, subtract the accumulated depreciation from the original cost of the item.
Accumulated depreciation refers to the total decline in value over the years in which the item was used. The formula to calculate book value is: Book Value = Cost – Accumulated Depreciation.
Is the book value equal to the selling price?
An asset’s book value is its theoretical value, not the amount it would sell for in the current market.
If you want to know how much an asset would sell for, you must calculate its fair market value. Book value can be higher, lower, or equal to an asset’s fair market value.