XYZ Company purchased an asset for $36204. It cost $2897 in freight costs to get it to their loading dock. They also had $3652 in installation costs. Salvage value is estimated to be $4890 and the useful life is 10 years. What is net book value at the end of 10 years? The correct answer is 4890, however I need to understand the reasoning behind why we subtract the freight and installation costs when solving the problem for net book value, when for example if you solve for depreciation expense you would add those costs in to get the answer. Thanks.