Book Value Of Equipment Formula

For example a piece of manufacturing equipment was purchased for 10 000 and depreciation over 4 years totaled 4 000.

Book value of equipment formula. On april 1 2012 company x purchased an equipment for rs. If the company aggregates its assets you may have to look at the company s notes to the financial statements. Therefore the calculation of book value per share will be as follows bvps total common shareholders equity preferred stock number of outstanding common shares 2 93 491 00 cr 592 18 cr.

Example of book value. Book value per share will be bvps 495 61 book value calculator. Suppose a company has a book value of 35 million and there are 1 4 million common shares outstanding.

The formula used to calculate the net book value of the assets is as below. It has a salvage value of php 500 000 at the end of its economic life. You can use this book value calculator.

Using the sum of the years digit method the book value at the end of two years is php 800 000. Net book value formula original purchase cost accumulated depreciation original purchase cost here means the purchase price of the asset paid at the time when the company purchased the assets. Find the book value of the equipment on the company s balance sheet.

The book value is the amount the equipment is currently worth. A machine costs php 2 000 000. The book value is only meant to provide an understanding of what percentage of the asset s cost has been expensed depreciated.

To make this easier convert total book value to book value per share. Book value cost of the asset accumulated depreciation accumulated depreciation is the total depreciation of the fixed asset accumulated up to a specified time. It can be useful to compare the market price of shares to the book value.