Q179
Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?
A.
Book value of a fixed asset
AnswerB.
Market value of a fixed asset
C.
Historical cost of a fixed asset
D.
Recoverable amount if a fixed asset
Answer: Option A
Solution
Answer: Option A
Solution:
Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = Book value of a fixed asset. Except for the cost of land, the cost of a fixed asset is spread over its estimated useful life to the business; the amount allocated to each period is called depreciation expense.