In calculating depreciation, residual value is
A) the fair value of a long-lived asset on the date of acquisition.
B) subtracted from accumulated depreciation to determine the long-lived asset's depreciable cost.
C) an estimate of what a long-lived asset could be sold for at the end of its useful life.
D) the amount that a similar replacement asset is expected to cost at the end of the old asset's useful life.

Question

Quizplus · Accepted Answer

Residual value is an estimate of the amount that an asset can be sold for at the end of its useful life. It is considered in the calculation of depreciation to determine the total amount that will be depreciated over the asset's useful life.

In Calculating Depreciation, Residual Value Is