Holly,Inc.has a building that originally cost $562,500.Holly expects to be able to sell the facility for $160,500 at the end of its useful life.The balance of the related Accumulated Depreciation account is $387,000.The residual value of the facility is:
A)$175,500.
B)$226,500.
C)$402,000.
D)$160,500.

Question

Quizplus · Accepted Answer

Residual (or salvage)value is the estimated amount to be recovered at the end of the company's estimated useful life of an asset.In this case,the residual value is $160,500.

Holly,IncHas a Building That Originally Cost $562,500