The book value of an asset cannot be less than its residual value.

Name: The book value of an asset cannot be less than its residual value.
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The book value of an asset is the difference between its acquisition cost and accumulated depreciation. The residual value is the estimated value of the asset at the end of its useful life. The book value cannot be less than the residual value because the asset cannot be worth less than its estimated salvage value.

The Book Value of an Asset Cannot Be Less Than