The estimated residual value of an asset is its:
A) estimated disposal value at the end of its useful life.
B) carrying value.
C) historical cost.
D) book value.

Question

Quizplus · Accepted Answer

The estimated residual value of an asset refers to the amount that an entity expects to obtain from the disposal of the asset at the end of its useful life. It is an estimate of the asset's economic value at the end of its useful life, which is essentially the salvage value of the asset. Thus, the correct answer is A.

The Estimated Residual Value of an Asset Is Its