A fixed asset's estimated value at the time it is to be retired from service is called
A) book value
B) residual value
C) market value
D) carrying value

Question

Quizplus · Accepted Answer

Residual value is the estimated value of a fixed asset at the end of its useful life. Book value is the value of the asset after accounting for accumulated depreciation, and carrying value is the same as book value. Market value is the value of an asset in the current market, which may or may not reflect the residual value. Therefore, the best choice is B, residual value.

A Fixed Asset's Estimated Value at the Time It Is