Accumulated depreciation is used to calculate an asset's net book value, which is the value of an asset carried on the balance sheet. The formula for net book value is the cost of the asset minus ...

Using the straight-line method, we know that we will be creating a constant depreciation expense every year. We also know that the book value of the tractor should equal $8,000 after 10 years ...

Book value and carrying value both refer to the value of an asset on a company's balance sheet and are interchangeable definitions.

Reviewed by David Kindness Fact checked by Kirsten Rohrs Schmitt Accumulated depreciation is the total amount of an asset's ...