When computing depreciation:
A) the depreciable cost is the cost of the asset minus its accumulated depreciation.
B) all assets must have a residual value.
C) the depreciable cost is the cost of the asset less accumulated depreciation.
D) the estimated residual value is not depreciated.

Question

Quizplus · Accepted Answer

The estimated residual value is not depreciated because it is the expected value of the asset at the end of its useful life, and depreciation is calculated on the cost of the asset minus the residual value.

When Computing Depreciation