Problem: The book value of one of Green Caterpillar's fixed assets is calculated as the original cost of the asset minus its annual depreciation expense.
This statement is, because:
An asset's net book value is calculated by adding its annual depreciation expense to its total historic and installation costs
An asset's net book value is calculated by subtracting its annual depreciation expense from its total historic and installation costs
An asset's net book value is calculated by subtracting its accumulated depreciation expense from its total historic and installation costs