When a company wants to place a value on a physical asset for its balance sheet,it must:

A) reduce the value by the amount the asset has depreciated.
B) auction the asset off.
C) ask its competitors what the asset is worth.
D) price a new one.
E) increase the value by the amount the asset has appreciated.

When a company wants to place a value on a physical asset for its balance sheet, it must reduce the value by the amount the asset has depreciated. This is because assets lose value over time due to wear and tear, obsolescence, or other factors. Depreciation is the process of allocating the cost of an asset over its useful life, and it reflects the decrease in the asset's value over time. Therefore, the value of the asset on the balance sheet should reflect its current market value, which is lower than its original cost.