The carrying value, or book value, of an item is related to business accounting. Accountants record the value of items based on a variety of factors, including how much was spent for the item, when it was first purchased and how long the item has been used. Carrying value is found by ...
Carrying value, or the carrying amount, or the book value, is the value of assets based on figures in the balance sheet. It is the cost of an asset less anydepreciationor amortization, or accumulated amount. The carrying amount is very different from the market value, which depends on the...
Defining Carrying Value In finance, carrying value refers to the monetary worth assigned to an asset or liability on a company’s balance sheet. It is also known as net book value or carrying amount. The carrying value represents the net value of an asset after adjusting for depreciation, amo...
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That is, the additional carrying cost for inventory is the current tax cost (including both regular and alternative minimum tax) less the present value of the future tax savings in periods when the delayed deduction becomes a current deduction. Uniform capitalization rules and inventory planning Gove...
Related to Carrying Amount: book value, Fair valueNet asset value (NAV) The value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed-end fund, the market ...
Explain why the book value of a long-term asset depends on management's choice of depreciation. What are some examples of long-term liabilities and why are these liabilities important to the business? What effect does collateral have on a company's debt rating and interest cost?
a) What is Weighted Average Cost of Capital? Explain and derive each component part. b) What is capital budgeting? c) What is a target capital structure? d) Derive the Net Present Value methodology What are two techniques that you could use to develop a rough estimate for each division's...
When defining book value, it has a few possible definitions. However, most commonly, book value is the value of an asset as it appears on the balance sheet. This is calculated by subtracting theaccumulated depreciationfrom the cost of the asset. It is an established accounting practice that a...
The carrying value, or book value, is an asset value based on the company'sbalance sheet, which takes the cost of the asset and subtracts its depreciation over time. The fair value of an asset is usually determined by the market and agreed upon by a willing buyer and seller, and it c...