Definition: An amount carried in accounting records. For an asset, it commonly reflects recorded cost less accumulated depreciation or other recorded adjustments; for owners' equity, it reflects recorded assets minus liabilities.
Example
Equipment recorded at $40,000 with $15,000 accumulated depreciation has a $25,000 carrying value.
Keep the distinction clear
Book value is an accounting amount, not an automatic estimate of what the asset or business could sell for.
Related terms
Balance Sheet · Depreciation · Asset
Keep studying
References: SEC: beginners' guide to financial statements
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