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

Question

Quizplus · Accepted Answer

Residual value is considered in the calculation of depreciation for tangible assets and amortization of intangible assets with a definite life, but it does not directly enter into the calculation of amortization expense for intangible assets with an indefinite life or under methods where residual value is not considered.

Residual Value Directly Enters into the Calculation of Amortization Expense