Book value of a depreciation asset will be equal to its salvage value -first yearat the end of the useful life- 5-th yearwhen disposed of

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Question

Book value of a depreciation asset will be equal to its salvage value __________.

first year

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5

th year

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at the end of the useful life

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when disposed of

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Solution

The correct option is B at the end of the useful life
Salvage value is the estimated resale value of an asset at the end of its useful life. Salvage value is subtracted from the cost of fixed asset to determine the amount of the asset cost that will be depreciated.

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Book value of a depreciation asset will be equal to its salvage value __________.

The correct option is B at the end of the useful lifeSalvage value is the estimated resale value of an asset at the end of its useful life. Salvage value is subtracted from the cost of fixed asset to determine the amount of the asset cost that will be depreciated.

The correct option is B at the end of the useful life
Salvage value is the estimated resale value of an asset at the end of its useful life. Salvage value is subtracted from the cost of fixed asset to determine the amount of the asset cost that will be depreciated.