Book Value Is Zero

Traditionally a company s book value is its total assets clarification needed minus intangible assets and liabilities.

Book value is zero. This net amount is the carrying amount carrying value or book value. If it has to pay 100 to get a junkyard to take it the company reports a 100 loss. As a result the combination of these assets costs minus their accumulated depreciation will likely be a net amount of zero.

Aftertax salvage value. For assets the value is based on the original cost of the asset less any depreciation amortization or impairment costs made against the asset. So when the life of the asset gets over its book value will become zero at the end.

The cost and accumulated depreciation will continue to be reported until the company disposes of the assets. So the aftertax salvage value is. Dr cost cr accumulated depreciation.

The book value of a company is the difference in value between that company s total assets and total liabilities on its balance sheet. If the book value is zero the equation for the aftertax salvage value becomes. Say the fully depreciated truck has a book value of zero.

Very often the book value of the equipment is zero as it is in this case. I understand that when running fa reports it excludes assets with a status of retired however when using smartlist fixed assets book there is no field to filter out all assets with a status of retired. First of all the book value of an asset depends upon the organization s method of depreciation that it is following as per the internal policies.

For an asset with nil net book value that is simply thrown away the journal will simplify to. The notes to the accounts are part of the information required to give a true and fair view of the the financial situation of the client. Now say the truck has been fully depreciated to a salvage value of 1 000.