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Real Estate Glossary

Book value

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Written by Luis Escobar

This is the value of an asset as it appears on a balance sheet. It is calculated by subtracting the accumulated depreciation from the cost. Anything can possess a book value–corporations, coins, automobiles, rare books, and various collectibles. Book value also refers to a company’s common stock entity that appears on a balance sheet. This indicates how much a certain company would have leftover in assets should it go out of business immediately.

This is the value of an asset as it appears on a balance sheet. It is calculated by subtracting the accumulated depreciation from the cost. Anything can possess a book value–corporations, coins, automobiles, rare books, and various collectibles. Book value also refers to a company’s common stock entity that appears on a balance sheet. This indicates how much a certain company would have leftover in assets should it go out of business immediately.

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Luis Escobar

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