Respuesta :
Answer:
Book Value
Explanation:
Depreciation refers to fall in the value an asset as a result of normal wear and tear or due to efflux of time.
Depreciation is calculated using the following formula:
Depreciation expense per annum = [tex]\frac{Original\ Cost\ -\ Estimated\ Salvage\ Value}{Life\ of\ the\ asset\ }[/tex]
When, a company revises an estimate such as salvage value or remaining useful life of the asset, depreciation expense would be recomputed using the following formula:
Depreciation expense = [tex]\frac{Book\ Value\ - Revised\ Salvage\ Value}{Remaining\ Useful\ Life\ Of\ the\ Asset}[/tex]
wherein, Book Value = Original Cost - Accumulated Depreciation till date
