Salvage value is: Multiple Choice

a. A factor relevant to determining depreciation under MACRS.

b. A factor relevant to determining depreciation that cannot be revised during an asset's useful life.

c. An estimate of the asset's value at the end of its benefit period.

d. Not a factor relevant to determining depletion.

e. A factor relevant to amortizing an intangible asset with an indefinite life.

Question

Social Studies

Aron Fitzgerald

21 August, 14:16

Salvage value is: Multiple Choice

a. A factor relevant to determining depreciation under MACRS.

b. A factor relevant to determining depreciation that cannot be revised during an asset's useful life.

c. An estimate of the asset's value at the end of its benefit period.

d. Not a factor relevant to determining depletion.

e. A factor relevant to amortizing an intangible asset with an indefinite life.

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Answers (1)

Know the Answer?

Alonso Everett · Answer 1

Option C is the answer - An estimate of the asset's value at the end of its benefit period

Explanation:

Salvage value (also known as scarp value or residual value) is an estimated book amount an asset is worth when its useful life comes to an end. A higher value can be quoted when an asset is sold off before the end of its beneficial life and a zero rating is usually stated when the asset is being used for a longer period of time. Depreciation schedule calculation do have the salvage value as its significant component.