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Book value at any date is the first cost less

  • A.the salvage value
  • B.the current year's depreciation only
  • C.the asset's market value
  • D.the accumulated depreciation to that date

Answer: D

It is an accounting figure that follows from the method chosen and has no reason to equal what the asset would fetch. Economic analysis needs the market value; book value enters only through the tax on any gain or loss.

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