Ans The residual value of an asset is:a) The original costb) The estimated selling price at the end of itsuseful lifec) The accumulated depreciationd) The annual depreciation expense

Explanation of Residual Value:Residual value, also known as salvage value, refers to the estimated…

Answered: The residual value of an asset is: a)…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 2MC

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The estimated economic life of an asset is also known as ________. A. residual value B. book value C. salvage life D. useful life
At the end of the expected useful life of a depreciable asset with an estimated 15% residual value, the accumulated depreciation would equal the original cost of the asset under which of the following depreciation methods?
What amounts should be recorded as a cost of a long-term asset?
Which of the following statements if not true? a. Depreciation is the process of allocating the purchase price of an asset minues its residual value to expense, for each period benefited by the asset. b. The cost of an asset includes all acquisition costs necessary to obtain the benefits to be derived from the asset. c. The service life of an asset is the measure of the number of years of service expected from the asset before its disposal. d. The residual value of an asset is the difference between the expected book value of the asset at the end of its service and the cost of disposal.
Residual value is: A. Also called residual value.B. Also called scrap value.C. An estimate of the asset's value at the end of its benefit period.D. A factor relevant to determining depreciation.E. All of these.
which method of depreciation is used when the cost of an asset is written off in equal amounts over it's expected life
What is the 'carrying amount of a depreciating non-current asset? O A. The cost (or fair value) of the asset less the accumulated depreciation on that asset O B. The current market value of the asset C. The cost (or fair value) of the asset less the current year's depreciation O D. The cost (or fair value) of the asset
A fixed asset's estimated value at the time it is to be retired from service is called market value book value carrying value residual value
Why does the depreciation included in computing the annual cost of annual worth method but not in computing the total cost of present and future worth method ?
Residual value of an asset refers to the amount that it can fetch at the Oa. End of its life Ob. Beginning of its life OC.Middle of its life d. Opening date
Residual value is O a. Present value. O b. Value in use. O c. The net cash amount that is received from the ultimate sale of the asset, at the end of its life. O d. The gross cash amount that is received from the ultimate sale of the asset, at the end of its life.
With depreciation, the book value of a fixed asset usually ___ __ ___ with the asset's market value.

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The residual value of an asset is: a) The original cost b) The estimated selling price at the end of its useful life c) The accumulated depreciation d) The annual depreciation expense