In computing depletion expense, residual value is not part of the computation.

Name: In computing depletion expense, residual value is not part of the computation.
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

The residual value is not included in the computation of depletion expense as it is the estimated value of the asset at the end of its useful life, and depletion expense is only concerned with allocating the cost of the asset over its useful life.

In Computing Depletion Expense, Residual Value Is Not Part of the Computation