Question

Historical cost without a reduction for accumulated depreciation is ______.

Option 1:
Book Value

Option 2:
Replacement Cost

Option 3:
Fair Value

Option 4:
Liquidation Value

Answer 1

The historical cost without a reduction for accumulated depreciation is 1) Book Value.

Step-by-step explanation:

The historical cost without a reduction for accumulated depreciation is Option 1: Book Value.

Historical cost is the original cost of an asset, while accumulated depreciation represents the portion of the asset's value that has been allocated as an expense over time. Book value is calculated by subtracting the accumulated depreciation from the historical cost.

For example, if a company purchased a piece of equipment for $10,000 and it has accumulated $3,000 in depreciation, the book value of the equipment would be $7,000.