Book Value Of Machine Formula

Net book value original asset cost accumulated depreciation.

Book value of machine formula. How to calculate book value the book value formula the calculation of book value includes the following factors. In this instance the depreciable base is found by adding b4 and b5. As an example consider this hypothetical balance sheet for a company that tracks the book value of its property plant and equipment it s common to group assets together like this.

The accumulated depreciation is the annual. The formula used to calculate the net book value of the assets is as below. Net book value formula original purchase cost accumulated depreciation original purchase cost here means the purchase price of the asset paid at the time when the company purchased the assets.

Calculating net book value. The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company. A machine costs php 2 000 000.

Note that the book value of the asset can never dip below the salvage value even if the calculated expense that year is large enough to put it below this value. The formula for calculating nbv is as follows. On april 1 2012 company x purchased an equipment for rs.

If you can t find a book value listing ask a machine technician or repairman if he has access to a blue book. Sample calculation of net book value. Book value fc total depreciation book value 1 500 000 800 000 book value php 700 000 problem 2.

When it reaches the end of its useful life the nbv should be equal to its salvage value. The book value shown on the balance sheet is the book value for all assets in that specific category. Book value may also be.