The historical cost of an asset less its residual (scrap) value is called:

Question

Quizplus · Accepted Answer

The depreciable amount is the cost of an asset less its residual (scrap) value, and it is the amount that can be depreciated over the asset's useful life. Choice A, carrying value, refers to the current book value of an asset, which includes accumulated depreciation. Choice B, accumulated depreciation, is the total amount of depreciation that has been recorded on the asset since it was acquired. Choice D, straight-line value, is not a commonly used accounting term.

The Historical Cost of an Asset Less Its Residual (Scrap)