Net book value is an asset's original cost minus its accumulated depreciation, the amount at which it is carried on the balance sheet.
Net book value (NBV), also called carrying value, is what a fixed asset is worth on the books: its original cost less all depreciation charged to date. It reflects the accounting estimate of remaining value, not necessarily the market value or the tax value, which can all differ.
NBV matters when an asset is sold: proceeds above NBV produce an accounting gain, below it a loss. Note that NBV (accounting) and undepreciated capital cost (tax) are usually different numbers, because book depreciation and CCA use different methods and rates.
A vehicle bought for $40,000 with $25,000 of accumulated depreciation has a net book value of $15,000. If sold for $18,000, the books show a $3,000 gain over NBV.
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