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Answer :
Book value is computed by taking: total assets minus its total liabilities.
How is book value determined?
A company's entire assets less its total liabilities equals its book value. In yearly and quarterly reports, the balance sheet of the corporation shows the total assets and total liabilities.
All financial assets, including cash, short-term investments, and accounts receivable, are included in total assets. Total assets also include tangible assets like stock, property, plant, and machinery.
Brand names and intellectual property are examples of intangible assets that, if they exist on financial statements, may be included in total assets. Deferred taxes, accounts payable, and other factors like loan obligations are included in total liabilities.
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