What is the 'WrittenDown Value'
The value of an asset after accounting for depreciation or amortization. Writtendown value is also called book value or net book value. It is calculated by subtracting accumulated depreciation or amortization from the asset's original value. Writtendown value reflects the asset's present worth from an accounting perspective. An asset's writtendown value will appear on the company's balance sheet.
BREAKING DOWN 'WrittenDown Value'
Writtendown value can be calculated by a method of depreciation that is sometimes called the diminishing balance method. This accounting technique reduces the value of an asset by a set percentage each year. Different depreciation techniques are used to capitalize the expenses of different types of assets. The taxable gain on a sale is often determined by comparing the sales from the item to its writtendown value. When an asset is intangible, such as a patent, it is amortized rather than depreciated.

Amortization
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WriteDown
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