If an accountant calculates depreciation expense on an asset without taking into account the asset's residual value of $5,000, depreciation expense for the periods will be lower than it should have been.

Question

Quizplus · Accepted Answer

Depreciation expense will be higher than it should have been because not accounting for the residual value means the entire cost of the asset is spread over its useful life, ignoring that a portion of its cost (the residual value) should not be depreciated.

If an Accountant Calculates Depreciation Expense on an Asset Without