Depreciable cost equals
A)cost less accumulated depreciation.
B)book value less residual value.
C)cost less residual value.
D)market value less residual value.

Question

Quizplus · Accepted Answer

Depreciable cost refers to the cost of an asset that can be depreciated over its useful life. It is calculated by subtracting the residual value from the cost of the asset. Therefore, the correct answer is C (cost less residual value). Option A is incorrect because accumulated depreciation is the total depreciation charged to an asset till the present date. Option B is incorrect because the book value already factors in the residual value. Option D is incorrect because market value is not relevant for calculating depreciable cost.

Depreciable Cost Equals