The book value of a depreciable asset can never be less than its:
A)historical cost.
B)market value.
C)capitalized cost.
D)residual value.

Question

Quizplus · Accepted Answer

The amount to be depreciated over the asset's life is the difference between its cost and residual value,an amount called the depreciable cost.A company should record depreciation each year of an asset's useful life until its total accumulated depreciation equals its depreciable cost.As a result,book value can never be less than residual value.

The Book Value of a Depreciable Asset Can Never Be