ENTREPRENEURSHIP

Detailed explanation-1: -What is Book Value? Book value (also known as carrying value or net asset value) is the value of an asset that is recognized on the balance sheet. It is determined as the cost paid for acquiring an asset minus any depreciation, amortization, or impairment costs applicable to the asset.

Detailed explanation-2: -The carrying value, or book value, is an asset value based on the company’s balance 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 can fluctuate often.

Detailed explanation-3: -The value of a company’s fixed assets – which are also known as capital assets or property plant and equipment – are straightforward to value, based on their book values and replacement costs.