Salvage value is:
A)Not a factor relevant to determining depletion.
B)A factor relevant to amortizing an intangible asset with an indefinite life.
C)An estimate of the asset's value at the end of its benefit period.
D)A factor relevant to determining depreciation under MACRS.
E)A factor relevant to determining depreciation that cannot be revised during an asset's useful life.

Question

Quizplus · Accepted Answer

Salvage value is an estimate of the asset's value at the end of its benefit period, also known as its useful life. It is relevant for determining a variety of depreciation methods, including straight-line, double-declining balance, and sum-of-the-years'-digits. It is also used in calculating depletion for natural resources. However, it is not relevant to amortizing intangible assets or determining depreciation under MACRS, and it can be revised during an asset's useful life if its estimated value changes.

Salvage Value Is