Literal question
What was the net book value, the value of assets after depreciation, of the following at the end of fiscal year s 2006 and 2005?
Land and buildings
Interviewer instructions
Net book value equals the purchase value minus depreciation.
The net book value represents the actual cost of assets at the time they were acquired, including all costs incurred in making the assets usable (such as transportation and installation) minus depreciation accumulated since the date of purchase. Included in the assets are all buildings, structures, machinery, and equipment (production, office, and transportation equipment) for which depreciation reserves are maintained. Accordingly, the value of assets at the end of the year includes the value of construction in progress.