Book value represents the carrying amount of an asset as recorded on the company's balance sheet. It is generally the purchase price of the asset plus any capital improvements minus accumulated depreciation.
Depreciated cost, also known as book value or adjusted tax basis, represents the value of a property after accounting for depreciation – the gradual reduction in the value of an asset over time. This figure is used in financial reporting and tax assessments to reflect the lowered worth of a property due to wear and tear, deterioration, or obsolescence.
