Written-Down Value

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DEFINITION

The value of an asset after accounting for depreciation or amortization. Written-down 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. Written-down value reflects the asset's present worth from an accounting perspective. An asset's written-down value will appear on the company's balance sheet.



INVESTOPEDIA EXPLAINS

Written-down 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 written-down value. When an asset is intangible, such as a patent, it is amortized rather than depreciated.




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