The Book Value of an Asset Is Primarily Used to Compute

Multiple Choice

The book value of an asset is primarily used to compute the:

A) annual depreciation tax shield.
B) amount of cash received from the sale of the asset.
C) amount of tax saved annually due to the depreciation expense.
D) amount of tax due on the sale of that asset.
E) change in depreciation needed to reflect the market value of the asset.