Ask Question
27 December, 19:02

In computing depreciation, salvage value isa. the fair market value of a plant asset on the date of acquisition. b. subtracted from accumulated depreciation to determine the plant asset'sdepreciable cost. c. an estimate of a plant asset's value at the end of its useful life. d. ignored in all the depreciation methods.

+1
Answers (1)
  1. 27 December, 21:21
    0
    c. an estimate of a plant asset's value at the end of its useful life

    Explanation:

    The salvage value or the residual value is the estimated value of the fixed asset which can be received at the end of its useful life. So, neither it is a fair market value of a plant asset, nor it is deducted from the accumulated depreciation.

    The treatment of the residual value under the straight-line method or any other method is shown below:

    The depreciation expense under the straight-line method is shown below:

    = (Original cost - residual value) : estimated life in years

    The residual value should always be deducted from the original cost of fixed asset
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In computing depreciation, salvage value isa. the fair market value of a plant asset on the date of acquisition. b. subtracted from ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers