The total cost of an asset less its accumulated depreciation is called:

A. Historical cost.

B. Book value.

C. Present value.

D. Current (market) value.

E. Replacement cost.

Total cost of asset less depreciationThe book value of an asset is the original cost of the asset less its accumulated depreciation. At the end of year three, for example, total accumulated depreciation equals $7,080, and the book value equals $5,720.