The net amount of a plant asset (cost minus accumulated depreciation) is called that asset’s book value, or carrying amount. Below shows how Genie would report the book value of its equipment and building at June 30 (the building data are assumed for this illustration).
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Genie Car Wash Plant Assets at June 30 |
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|
Equipment |
$24,000 |
|
|
Less: Accumulated Depreciation |
(400) |
$23,600 |
|
Building |
$50,000 |
|
|
Less: Accumulated Depreciation |
(200) |
49,800 |
|
Book value of plant assets |
$73,400 |
At June 30, the book value of equipment is $23,600; the book value of the building is $49,800.