Salvage value refers to the estimated value of an asset at the end of its useful life or benefit period. This is relevant in determining the depreciation expense for tax purposes as well as the net book value of the asset on the balance sheet.

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Salvage Value Is

Question 76

Multiple Choice

Salvage value is:

A) Not a factor relevant to determining depletion.
B) A factor relevant to amortizing an intangible asset with an indefinite life.
C) An estimate of the asset's value at the end of its benefit period.
D) A factor relevant to determining depreciation under MACRS.
E) A factor relevant to determining an asset's useful life.

Correct Answer: