Residual value directly enters into the calculation of depreciation expense under all depreciation methods.

Question

Quizplus · Accepted Answer

Residual value is considered in the calculation of depreciation expense for methods like straight-line depreciation, but it does not directly affect the calculation in methods such as double-declining balance, where depreciation is calculated based on the book value of the asset at the beginning of each period without directly considering the residual value.

Residual Value Directly Enters into the Calculation of Depreciation Expense