Book Value

Book Value

Book Value means:
the value of individual assets, calculated as actual cost less allowances for any depreciation. Book value may be much more or less than current fair market value.

Example of Book Value:

Learn more about tax examples, explanations and calculations here.

X Corporation purchases a building for $100,000, then depreciates it by $10,000 on its financial statements. The book value was $100,000 and is later $90,000.

U.S. and other Developed Countries International Tax Meaning

The value of individual asset as recorded in the accounting records of a taxpayer, calculated as actual cost less allowances for any depreciation.

Description and Definition of Book Value

An accounting term which usually refers to a business' cost of assets minus liabilities. The book value of a stock is determined from a company's records by adding all assets (generally excluding such intangibles as goodwill), then deducting all debts and other liabilities plus the liquidation price of any preferred stock issued. The sum arrived at is divided by the number of common shares outstanding and the result is the book value per common share. The book value of the assets of a company generally has no significant relationship to the company's market value.

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