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what is the formula to calculate book value of an asset. The formula for calculating NBV is as follows. In year fifth the accumulated depreciation will increase to 90000 USD and the Net Book Value will equal to 10000 or equivalent to scrap value of assets.
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It can be defined as the net asset value of the firm or of the company that can be calculated as total assets less intangible assets that is goodwill patents etc and liabilities. Book value may also be. In year fifth the accumulated depreciation will increase to 90000 USD and the Net Book Value will equal to 10000 or equivalent to scrap value of assets.
Book Value formula calculates the net asset of the company derived by total of assets minus the total liabilities.
The formula for calculating NBV is as follows. Straight Line Depreciation Formula. Its original cost was 20000 and depreciation expenses equal 5000. NBV 100000 - 7000 x 5 years 65000.
