Book Value Of Equipment Formula

Market value is the price a willing buyer would pay a willing seller.

Book value of equipment formula. The formula used to calculate the net book value of the assets is as below. A machine costs php 2 000 000. Book value cost of the asset accumulated depreciation accumulated depreciation is the total depreciation of the fixed asset accumulated up to a specified time.

Book value fc total depreciation book value 1 500 000 800 000 book value php 700 000 problem 2. Sum of the years digit method. On april 1 2012 company x purchased an equipment for rs.

How to calculate book value the book value formula the calculation of book value includes the following factors. If the company aggregates its assets you may have to look at the company s notes to the financial statements. Suppose a company has a book value of 35 million and there are 1 4 million common shares outstanding.

You can use this book value calculator. Using the sum of the years digit method the book value at the end of two years is php 800 000. The book value is the amount the equipment is currently worth.

Divide 35 million by 1 4 million shares for a book value per share of 25. For example a company has a widget making machine on its books at 500 000. Example of book value.

Find the book value of the equipment on the company s balance sheet. For example a piece of manufacturing equipment was purchased for 10 000 and depreciation over 4 years totaled 4 000. It has a salvage value of php 500 000 at the end of its economic life.