Depreciable asset - accumulated depraecation = net of Depreciable asset (PPE) Which is the reported PPE(net)
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)
Depreciation expense is a nominal account which will goin to net income at the end of term. Accumulated depreciation is a contra account with capital assets which shows up in balance sheet.
Net Fixed Assets is the term used for the difference between the balance of a fixed asset account and the related accumulated depreciation.
Book Value
The net book value of a depreciable asset is calculated by deducting the accumulated depreciation from the original cost of the asset. Accumulated depreciation is the total depreciation expense recorded over the life of the asset. This calculation allows for the determination of the asset's value at a specific point in time.
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)
Depreciation expense is a nominal account which will goin to net income at the end of term. Accumulated depreciation is a contra account with capital assets which shows up in balance sheet.
Net Fixed Assets is the term used for the difference between the balance of a fixed asset account and the related accumulated depreciation.
Book Value
Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets.
The accumulated depreciation relating to the piece of equipment will be eliminated from the accounts when the company disposes of the asset. The double entry for the sale of a piece of equipment would be-DR Cash/Bank (with the proceeds)DR Accumulated depreciation (with the total depreciation held for that asset)CR Equipment (with the original cost of the equipment)DR/CR Profit/loss on disposal (with the difference between the proceeds and the NBV of the asset at the time of sale).
When a company buys an asset they have to spread the cost of the asset over it's useful economic lifetime, this is done with depreciation. The accumulated depreciation is the depreciation from previous years and the charge for the year is the amount being depricated that year, which will be charged to the profit and loss. The assets will shows as a debit balance while depreciation will show as a credit balance in the balance sheet. When charge the depreciation for the year you would credit the balance sheet and debit the profit and loss. So after the asset has come to the end of it's useful economic lifetime the value in the balance sheet will become zero or close to it as the credits of depreciation will cancel out the debit if the asset value.
Depreciation is a tax write off example you purchase a property for $100,000 you can't depreciate land but you can the structure about 80% that is $80,000 over a period of 27.5 yrs in round figures that is about $2900 yr. If you are in a 20% tax bracket it is a savings of approx $580 in taxes. There are other things to take into consideration so take with your accountant. Accumulated depreciation is what you accumulate over the holding of the investment and when you sell the investment it is added back as if income or a lost depending on the sale price .
The book value of a fixed asset (PP&E) is the difference between the fixed asset account and it's related accumulated depreciation account. You have a truck you paid $25,000 and you have depreciated it for the amount of $10,000 then the "book value" would be $15,000.
This will be found under "deferred taxes" on the income statement.