{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Thusthenetbookvalueofthecaris

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: rite­off would be $66.67 (12,000/180). Depletion is used to record the consumption of natural resources. Depletion is depreciation of wasting assets such as mines, oil wells, timber trees etc. 15 15 Types of Valuation People often use the term net book value interchangeably with net asset value (NAV), which refers to a company's total assets minus its total liabilities. Here's the formula for net book value: Net Book Value = Cost of the Asset ­ Accumulated Depreciation Assume A Company bought a CAR for $10,000 three years ago. The CAR depreciates by $1,000 a year. Thus the net book value of the CAR is: $10,000 ­ $1,000 (year 1 depreciation) ­ $1,000 (year 2 depreciation) ­ $1,000 (year 3 depreciation) = $7,000. 16 16 Market Types of Valuation Value­The current price at which investors buy or sell a share of common stock or a bond at a specific time. In the context of securities, market value is often different from book value because the market value reflects future expectations. Mos...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern