The cost of an asset less accumulated depreciation equals what

http://www.investopedia.com/terms/b/bookvalue.asp

The cost of an asset less accumulated depreciation equals the book value or carrying value of the asset.

The cost of an asset less accumulated depreciation equals the book value or the carrying value of the asset.

To understand how to calculate this, you first need to know the definitions of cost and accumulated depreciation:

1. Cost: This is the original amount paid to acquire the asset, including any additional costs incurred to get the asset ready for its intended use. It includes the purchase price, taxes, shipping, installation, and any other expenses directly related to acquiring the asset.

2. Accumulated depreciation: This is the total amount of depreciation expense recorded for the asset over its useful life. Depreciation is an accounting method used to allocate the cost of an asset over its estimated useful life. It represents the decrease in value of the asset over time due to factors such as wear and tear, obsolescence, or loss of market value.

The book value or carrying value of an asset is calculated by subtracting the accumulated depreciation from the cost of the asset:
Book value = Cost of the asset - Accumulated depreciation

For example, let's say you purchased a machine for $10,000, and it has accumulated depreciation of $2,000. The book value of the machine would be:
Book value = $10,000 - $2,000
Book value = $8,000

So, in this case, the cost of the asset less accumulated depreciation equals $8,000.