Purrfect Pets has a facility that originally cost $375,000.The balance of the accumulated depreciation account for the facility is $258,000.The company expects to be able to sell the facility for $107,000 at the end of its useful life.The residual value of the facility is:

Question

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The residual value of an asset is the estimated amount that a company expects to obtain from disposing of the asset at the end of its useful life. In this case, Purrfect Pets expects to be able to sell the facility for $107,000 at the end of its useful life, which directly defines the residual value.

Purrfect Pets Has a Facility That Originally Cost $375,000