The amount of an asset's residual value does NOT affect the calculation of depreciation in the units-of-production method.

Name: The amount of an asset's residual value does NOT affect the calculation of depreciation in the units-of-production method.
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Question

Quizplus · Accepted Answer

In the units-of-production method, the residual value is subtracted from the asset's cost to determine the depreciable amount, which is then divided by the total estimated production to calculate depreciation per unit.

The Amount of an Asset's Residual Value Does NOT Affect