Capital asset net book value

Annaly capital management inc nly price book value. When an asset is impaired, its fair value decreases, which will lead to an adjustment of book value on the balance sheet. Net book value is calculated as the original cost of an asset, minus any accumulated depreciation, accumulated depletion, accumulated amortization, and accumulated impairment. Western asset mortgage capital price to book value wmc.

Equal to its original cost its book value minus depreciation and amortization. The gain or loss on the sale of an asset used in a business is the difference between 1 the amount of cash that a company receives, and 2 the assets book value carrying value at the time of the sale. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets. How do you calculate the gain or loss when an asset is. The calculation of book value for an asset is the original cost of the asset minus the a ccumulated depreciation to the date of the report. Nbv is calculated using the asset s original cost how much it cost to acquire the asset with the depreciation, depletion, or amortization amortization amortization refers to the act of paying off a debt through scheduled, predetermined smaller payments. The net book value of a noncurrent asset is the net amount reported on the. After the initial purchase of an asset, there is no accumulated depreciation yet. Book value can also be thought of as the net asset value of a. Net fixed assets is a valuation metric that measures the net book value of all fixed assets on the balance sheet at a given point in time calculated by subtracting. Book value can also be thought of as the net asset value of a company calculated as total assets minus intangible assets patents, goodwill and liabilities. Net book value is the amount at which an organization records an asset in its accounting records. Capital assets can also be damaged or become obsolete.

All three of these amounts are shown on the business balance sheet, for all depreciated assets. Book value is the total value of a business assets found on its balance sheet, and represents the value of all assets if liquidated. Nbv is calculated using the assets original cost how. In depth view into western asset mortgage capital price to book value including historical data from 2012, charts, stats and industry comps. Net book value represents an accounting methodology for the gradual reduction in the recorded cost of a fixed asset. Net fixed assets formula example calculation analysis. Net book value nbv refers to a companys assets or how the assets are recorded by the accountant. Net book value is the value of fixed assets after deducting the accumulated depreciation and accumulated impairment expenses from the original cost of fixed. Net book value is the value at which a company carries an asset on its. If a company disposes of sells a longterm asset for an amount different from the amount in the companys accounting records its book value, an adjustment must be made to the net income shown as the first amount on the cash flow statement. The price to book ratio or pb is calculated as market capitalization divided by its book value. This depreciation in the assets value must be accounted for on the companys income statement and balance sheet to capture the loss in value over time as an expense and as a reduction in the. The book value definition refers to a companys value or net worth that is recorded on its financial statement. Net book value is, therefore, an amount which reflects the value of fixed asset placed on the balance sheet and is calculated as a difference between the cost of.