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How to calculate book value of equipment

Understand the Problem

The question is asking for the method to determine the book value of a piece of equipment, which typically involves understanding depreciation and accounting principles.

Answer

Book Value = Original Cost - Accumulated Depreciation

The final answer is: Book Value = Original Cost - Accumulated Depreciation

Answer for screen readers

The final answer is: Book Value = Original Cost - Accumulated Depreciation

More Information

Calculating the book value helps determine the current worth of an asset, which is essential for accounting and financial analysis. It provides insight into how much value has been used up over time.

Tips

A common mistake is not properly calculating or updating the accumulated depreciation over time, which can lead to incorrect book values.

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