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Book value is the original price minus accumulated depreciation.
Scenario: You purchased a lemonade machine for $500. It's estimated to have a 4 year life. Assume using the straight-line depreciation method, it accumulates $100 of annual depreciation. After 2 years, you sell the lemonade machine at book value. What's the book value?
Accumulated Depreciation = $100 x 2 years
Accumulated Depreciation = $200
Book Value = Original Price - Accumulated Depreciation
Book Value = $500 - $200
Book Value = $300
