An asset should not be depreciated below its estimated salvage value.

Name: An asset should not be depreciated below its estimated salvage value.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

This is because the estimated salvage value represents the value that is expected to be received from the disposal of the asset at the end of its useful life. Depreciating an asset below its salvage value would result in a negative book value, which is not acceptable.

An Asset Should Not Be Depreciated Below Its Estimated Salvage