What is the formula for calculating th value of fixed assets?
The formula for calculating the value of fixed assets is:
Fixed Assets = Cost of Acquisition - Accumulated Depreciation
Where:
- Cost of Acquisition refers to the original cost of acquiring the fixed asset, including purchase price, transportation costs, installation costs, and any other costs directly attributable to the acquisition.
- Accumulated Depreciation refers to the total depreciation expense that has been recorded for the fixed asset since its acquisition.
The result represents the net book value or carrying value of the fixed asset on the company's balance sheet.