{"id":3261,"date":"2020-06-12T13:18:56","date_gmt":"2020-06-12T12:18:56","guid":{"rendered":"https:\/\/www.nickzom.org\/blog\/?p=3261"},"modified":"2024-03-31T08:25:58","modified_gmt":"2024-03-31T07:25:58","slug":"how-to-calculate-and-solve-for-book-value-straight-line-method-depreciation","status":"publish","type":"post","link":"https:\/\/www.nickzom.org\/blog\/2020\/06\/12\/how-to-calculate-and-solve-for-book-value-straight-line-method-depreciation\/","title":{"rendered":"How to Calculate and Solve for Book Value | Straight line Method | Depreciation."},"content":{"rendered":"

\"\"<\/p>\n

The image above represents book value. To calculate book value, four essential parameters are needed and these parameters are present amount or worth (P), salvage value (S), total estimated life of the asset (N) and number of years of the asset (t).<\/strong><\/p>\n

The formula for calculating book value:<\/strong><\/h3>\n

B = P – ((P – S)t \/ N)<\/p>\n

Where;<\/p>\n

B = Book value over a period of time
\nP = Present amount or worth
\nS = Salvage value
\nN = Total estimated life of an asset
\nt = Number of years of the asset<\/p>\n

Let’s solve an example;
\nFind the book value when the present amount or worth is 12, the salvage value is 10, total estimated life of an asset is 8 and the number of years of the asset is 14.<\/p>\n

This implies that;<\/p>\n

P = Present amount or worth = 12
\nS = Salvage value = 10
\nN = Total estimated life of an asset = 8
\nt = Number of years of the asset = 14<\/p>\n

B = P – ((P – S)t \/ N)
\nSo, B = 12 – ((12 – 10)14 \/ 8)
\nB = 12 – ((2)14 \/ 8)
\nB = 12 – (28 \/ 8)
\nThen, B = 12 – 3.5
\nB = 8.5<\/p>\n

Therefore, the book value<\/strong>\u00a0is \u20a68.5<\/strong><\/p>\n

Calculating the Present Amount or Worth when the Book Value, the Salvage Value, the Total Estimated Life of the Asset and the Number of years of the Asset are Given<\/strong><\/h3>\n

P = – (B x N<\/sup> \/ t<\/sub>) – S<\/p>\n

Where;<\/p>\n

P = Present amount or worth
\nB = Book value over a period of time
\nS = Salvage value
\nN = Total estimated life of an asset
\nt = Number of years of the asset<\/p>\n

Let’s solve an example;
\nFind the present amount or worth when the book value is 20, the salvage value is 10, the total estimated life of an asset is 5 and the number of years of the asset is 9.<\/p>\n

This implies that;<\/p>\n

B = Book value over a period of time = 20
\nS = Salvage value = 10
\nN = Total estimated life of an asset = 5
\nt = Number of years of the asset = 9<\/p>\n

P = – (B x N<\/sup> \/ t<\/sub>) – S
\nSo, P = – (20 x 5<\/sup> \/ 9<\/sub>) – 10
\nP = – (100<\/sup> \/ 9<\/sub>) – 10
\nThen, P = – 11.11 – 10
\nP = 1.11<\/p>\n

Therefore, the\u00a0present amount or worth\u00a0<\/strong>is\u00a01.11.<\/strong><\/p>\n

Read more:\u00a0How to Calculate and Solve for Depreciation Value | Declining Balance Method | Depreciation<\/a><\/p>\n

Calculating the Salvage Value when the Book Value, the Present Amount or Worth, the Total Estimated life of the Asset and the Number of years of the Asset are Given<\/strong><\/h3>\n

S = ((B – P)N<\/sup> \/ t<\/sub>) – P<\/p>\n

Where;<\/p>\n

S = Salvage value
\nB = Book value over a period of time
\nP = Present amount or worth
\nN = Total estimated life of an asset
\nt = Number of years of the asset<\/p>\n

Let’s solve an example;
\nFind the salvage value when the book value is 15, the present amount or worth is 10, the total estimated life of an asset is 4 and the number of years of the asset is 2.<\/p>\n

This implies that;<\/p>\n

B = Book value over a period of time = 15
\nP = Present amount or worth = 10
\nN = Total estimated life of an asset = 4
\nt = Number of years of the asset = 2<\/p>\n

S = ((B – P)N<\/sup> \/ t<\/sub>) – P
\nThen, S = ((15 – 10)4<\/sup> \/ 2<\/sub>) – 10
\nS = ((5)4<\/sup> \/ 2<\/sub>) – 10
\nS = (20<\/sup> \/ 2<\/sub>) – 10
\nThis means that, S = 10 – 10
\nS = 0<\/p>\n

Therefore, the\u00a0salvage value\u00a0<\/strong>is\u00a00.<\/strong><\/p>\n

Calculating the Number of Years of the Asset when the Book Value, the Present Amount or Worth, Salvage Value and the Total Estimated Life of an Asset are Given<\/strong><\/h3>\n

t = (B – P)N<\/sup> \/ P + S<\/sub><\/p>\n

Where;<\/p>\n

t = Number of years of the asset
\nB = Book value over a period of time
\nP = Present amount or worth
\nS = Salvage value
\nN = Total estimated life of an asset<\/p>\n

Let’s solve an example;
\nFind the Number of years of the asset when the book value is 24, the present amount or worth is 14, the salvage value is 4 and the total estimated life of an asset is 3.<\/p>\n

This implies that;<\/p>\n

B = Book value over a period of time = 24
\nP = Present amount or worth = 14
\nS = Salvage value = 4
\nN = Total estimated life of an asset = 3<\/p>\n

t = (B – P)N<\/sup> \/ P + S<\/sub>
\nt = (24 – 14)3<\/sup> \/ 14 + 4<\/sub>
\nSo, t = (10)3<\/sup> \/ 18<\/sub>
\nt = 30<\/sup> \/ 18<\/sub>
\nt = 1.667<\/p>\n

Therefore, the\u00a0number of years of the asset\u00a0<\/strong>is\u00a01.667.<\/strong><\/p>\n

Calculating the Total Estimated life of the Asset when the Book Value, the Present Amount or Worth, the Salvage Value and the Number of years of the Asset are Given<\/strong><\/h3>\n

N = (P + S)t<\/sup> \/ B – P<\/sub><\/p>\n

Where;<\/p>\n

N = Total estimated life of an asset
\nB = Book value over a period of time
\nP = Present amount or worth
\nS = Salvage value
\nt = Number of years of the asset<\/p>\n

Let’s solve an example;
\nFind the total estimated life of an asset when the book value is 30, the present amount or worth is 12, the salvage value is 10 and the number of years of the asset is 7.<\/p>\n

This implies that;<\/p>\n

B = Book value over a period of time = 30
\nP = Present amount or worth = 12
\nS = Salvage value = 10
\nt = Number of years of the asset = 7<\/p>\n

N = (P + S)t<\/sup> \/ B – P<\/sub>
\nThat is, N = (12 + 10)7<\/sup> \/ 30 – 12<\/sub>
\nN = (22)7<\/sup> \/ 18<\/sub>
\nSo, N = 154<\/sup> \/ 18<\/sub>
\nN = 8.55<\/p>\n

Therefore, the\u00a0total estimated life of an asset\u00a0<\/strong>is\u00a08.55.<\/strong><\/p>\n

How to Calculate and Solve for Book Value | Straight line Method Using Nickzom Calculator<\/strong><\/h3>\n

Nickzom Calculator \u2013\u00a0The Calculator Encyclopedia<\/strong> is capable of calculating the book value.<\/p>\n

To get the answer and workings of the book value using the Nickzom Calculator \u2013 The Calculator Encyclopedia.\u00a0<\/strong>First, you need to obtain the app.<\/p>\n

You can get this app via any of these means:<\/p>\n

Web<\/strong>\u00a0\u2013\u00a0https:\/\/www.nickzom.org\/calculator-plus<\/a><\/p>\n

To get access to the\u00a0professional\u00a0<\/strong>version via web, you need to\u00a0register<\/strong>\u00a0and\u00a0subscribe\u00a0<\/strong>for\u00a0NGN 1,500\u00a0<\/strong>per\u00a0annum<\/strong>\u00a0to have utter access to all functionalities.
\nYou can also try the\u00a0demo\u00a0<\/strong>version via\u00a0https:\/\/www.nickzom.org\/calculator<\/a><\/p>\n

Android (Paid)<\/strong>\u00a0\u2013\u00a0https:\/\/play.google.com\/store\/apps\/details?id=org.nickzom.nickzomcalculator<\/a>
\nAndroid (Free)<\/strong>\u00a0\u2013\u00a0https:\/\/play.google.com\/store\/apps\/details?id=com.nickzom.nickzomcalculator<\/a>
\nApple (Paid)<\/strong>\u00a0\u2013\u00a0https:\/\/itunes.apple.com\/us\/app\/nickzom-calculator\/id1331162702?mt=8<\/a>
\nOnce, you have obtained the calculator encyclopedia app, proceed to the\u00a0Calculator Map,\u00a0<\/strong>then click on Economics<\/strong>\u00a0<\/b>under\u00a0Engineering<\/strong>.<\/strong><\/p>\n

\"\"<\/p>\n

Now, Click on Depreciation<\/strong>\u00a0u<\/strong>nder\u00a0Economics<\/strong><\/p>\n

\"How<\/p>\n

Now, Click on\u00a0Book Value\u00a0<\/strong>under\u00a0Depreciation<\/strong><\/p>\n

\"How<\/p>\n

The screenshot below displays the page or activity to enter your values, to get the answer for the book value according to the respective parameters which are the present amount or worth (P), salvage value (S), total estimated life of the asset (N) and number of years of the asset (t).<\/strong><\/p>\n

\"\"<\/p>\n

Now, enter the values appropriately and accordingly for the parameters as required by the present amount or worth (P)<\/strong> is 12<\/strong>, salvage value (S)<\/strong> is 10<\/strong>, total estimated life of the asset (N)<\/strong> is 8 <\/strong>and number of years of the asset (t)<\/strong> is 14<\/strong>.<\/p>\n

\"How<\/p>\n

Finally, Click on Calculate<\/p>\n

\"\"
\n\"How<\/p>\n

As you can see from the screenshot above,\u00a0Nickzom Calculator<\/strong>\u2013 The Calculator Encyclopedia solves for the book value and presents the formula, workings and steps too.<\/p>\n","protected":false},"excerpt":{"rendered":"The image above represents book value. To calculate book value, four essential parameters are needed and these parameters…","protected":false},"author":5,"featured_media":13638,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_lmt_disableupdate":"","_lmt_disable":"","_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","_yoast_wpseo_focuskw_text_input":"","csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","footnotes":""},"categories":[47],"tags":[924,926,63,60,923,920,921,925,922],"class_list":["post-3261","post","type-post","status-publish","format-standard","has-post-thumbnail","category-engineering","tag-book-value","tag-depreciation","tag-economics","tag-engineering","tag-number-of-years-of-the-asset","tag-present-amount-or-worth","tag-salvage-value","tag-straight-line-method","tag-total-estimated-life-of-the-asset","cs-entry"],"yoast_head":"\nHow 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