Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = ?

A. Book value of a fixed asset

B. Market value of a fixed asset

C. Historical cost of a fixed asset

D. Recoverable amount if a fixed asset

Answer: Option A

Solution(By Examveda Team)

Cost of a fixed asset - Accumulated depreciation expenses of the fixed asset = Book value of a fixed asset. Except for the cost of land, the cost of a fixed asset is spread over its estimated useful life to the business; the amount allocated to each period is called depreciation expense.