If depreciation expense is calculated without taking into account the asset's residual value,depreciation expense will be higher than it should have been.

Name: If depreciation expense is calculated without taking into account the asset's residual value,depreciation expense will be higher than it should have been.
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Question

Quizplus · Accepted Answer

An asset's depreciable basis is equal to the cost of the asset minus residual value. Ignoring the residual value increases the depreciable basis and therefore depreciation expense.

If Depreciation Expense Is Calculated Without Taking into Account the Asset's