The estimated residual value of an asset is its:
A) historical cost.
B) book value.
C) estimated disposal value at the end of its useful life.
D) carrying value.

Question

Quizplus · Accepted Answer

The estimated residual value of an asset is the amount that the asset is expected to be sold for at the end of its useful life. Therefore, the correct option is C as it best describes the estimated disposal value of the asset at the end of its useful life. Option A (historical cost) refers to the original price paid for the asset. Option B (book value) refers to the value of the asset after accounting for depreciation. Option D (carrying value) refers to the value of the asset as recorded on the balance sheet.

The Estimated Residual Value of an Asset Is Its