if the depreciable basis of an asset is $100,000 and depreciation expense in year 1 was $15,000 and $40,000 in year 2, what is the asset's book value?
The book value of the asset at the beginning =$100,000
The book value of asset at end of year 1=($100,000-15000)=$85000
The book value of asset at end of year 2 =($85000-40,000)=$45000.
Thee depreciable basis is the amount of asset-the salvage value of the asset ie the value of the asset to be depreciated over its useful life.Book value of asset is value to be carried in the balance sheet(ie cost less depreciation/accumulated depreciation).