In calculating depreciation, residual value is
A) the fair value of the asset on the date of acquisition.
B) subtracted from accumulated depreciation to determine the asset's depreciable cost.
C) an estimate of the asset's value at the end of its useful life.
D) ignored in all the depreciation methods.

Question

Quizplus · Accepted Answer

Residual value is the estimated value of an asset at the end of its useful life, which is used to calculate the depreciable cost of the asset.

In Calculating Depreciation, Residual Value Is