Is depreciation part of book value?

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1269237

2026-07-08 04:15

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Yes, depreciation is a key factor in determining book value. Book value represents the net asset value of a company, calculated as total assets minus total liabilities. As assets depreciate over time, their value on the balance sheet decreases, which in turn affects the overall book value of the company. Thus, accumulated depreciation directly reduces the book value of the assets listed.

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