In calculating depreciation, residual value is
A)the fair value of the asset on the date of acquisition.
B)subtracted from accumulated depreciation to determine the asset's depreciable cost.
C)an estimate of the asset's value at the end of its useful life.
D)ignored in all the depreciation methods.

Question

Quizplus · Accepted Answer

Residual value, also known as salvage value, is an estimate of the asset's value at the end of its useful life. It is considered when calculating depreciation to determine the total amount that will be depreciated over the asset's useful life.

In Calculating Depreciation, Residual Value Is