In computing for the reproduction value per share, the book value is always equal to its reproduction value.Select one:TrueFalse
Question
In computing for the reproduction value per share, the book value is always equal to its reproduction value. Select one:
- True
- False
Solution
The statement "In computing for the reproduction value per share, the book value is always equal to its reproduction value" is False.
Explanation:
- Book Value refers to the value of an asset as it appears on the balance sheet. It is calculated based on historical costs and may not reflect current market conditions or replacement costs.
- Reproduction Value is the estimated cost to replace an asset with a similar one at current market prices. This value takes into account depreciation, inflation, and current market conditions.
Since these two values are calculated based on different methods and reflect different conditions, they are not always equal. Therefore, the correct answer is False.
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