Which of the following statements about the end of an asset's life is correct?
A)At the end of an asset's life,its book value should equal its depreciable cost.
B)At the end of an asset's life,the Accumulated Depreciation should equal the residual value.
C)Assets are depreciated below residual value only when the double-declining balance method is used.
D)At the end of an asset's life,the book value would equal zero if there is no residual value.

Question

Quizplus · Accepted Answer

The amount to be depreciated over the asset's life is the difference between its cost and residual value,an amount called the depreciable cost.A company should record depreciation each year of an asset's useful life until its total accumulated depreciation equals its depreciable cost.As a result,book value can never be less than residual value.

Which of the Following Statements About the End of an Asset's