Book Value (Carrying Value)

Definition

The value of an asset on the balance sheet after subtracting accumulated depreciation. Formula: Cost − Accumulated Depreciation = Book Value. It's what the asset is "worth" in your accounting records, not its market value.

Related Terms

Accumulated Depreciation

A running total of all depreciation expense ever recorded on a long-term asset. It's a contra-asset account—meaning it reduces the asset's value on the balance sheet. Think of it as wear-and-tear mileage that accumulates over the asset's life.

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