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

Question

Quizplus · Accepted Answer

Salvage value is an estimate of a plant asset's value at the end of its useful life. It is subtracted from the cost of the asset to determine the depreciable value of the asset, and is used in various depreciation methods to calculate the annual depreciation expense.

In Computing Depreciation, Salvage Value Is