On the balance sheet, the balance in the Accumulated Depreciation account is shown as a deduction from
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On the balance sheet, the balance in the Accumulated Depreciation account is shown as a deduction from the original cost of the asset, and the remaining amount is called book value . For example, the listing:
Property, Plant and Equipment . . . . . . . . . . . . . . . . . . . . . $10,000 Less accumulated depreciation . . . . . . . . . . . . . . . . . . . 4,000 Book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,000 shows that the PPE originally cost $ , that $ of its original cost has so far been recognized as depreciation expense, and that $ of book value remains to be depreciated in future years. (Part of the book value may be the estimated residual value.)
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