The remaining cost of an asset (particularly a fixed asset) after deducting any accumulated depreciation from the asset’s original cost (i.e., acquisition cost) either at any point in time over its useful life (up to a specific date) or at the end of its useful life:
Depreciated cost= asset cost – accumulated depreciation
In other words, depreciated cost represents the remaining value of an asset that can be utilized over its remaining life, or the remaining value as of the date it completes its useful life.
The depreciated cost is also known as the salvage value, net book value, or adjusted cost basis.
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