<\/span><\/h2>\nTo find the net book value of fixed assets, you need to follow these steps:<\/p>\n
1. Determine the original cost of the asset:<\/b> Identify the initial cost incurred to acquire the asset, including any additional costs directly attributable to its acquisition, such as transportation or installation fees.<\/p>\n
2. Calculate the accumulated depreciation:<\/b> Depreciation is the allocation of the asset’s cost over its useful life. Determine the total depreciation by subtracting the asset’s salvage value (residual value) from its original cost and then dividing it by the asset’s useful life.<\/p>\n
3. Subtract the accumulated depreciation from the original cost:<\/b> Once you have determined the accumulated depreciation, subtract it from the asset’s original cost. The result is the net book value of the fixed asset.<\/p>\n
4. Repeat the process for each fixed asset:<\/b> If your business owns multiple fixed assets, calculate the net book value for each individually by following the same steps.<\/p>\n
5. Record the net book value:<\/b> Once you have calculated the net book value for each fixed asset, record these values in your company’s financial statements or asset register.<\/p>\n