In Calculating Depreciation, Residual Value Is

question 154

Multiple Choice

In calculating depreciation, residual value is

• A)the fair value of the asset on the date of acquisition.
• B)subtracted from accumulated depreciation to determine the asset's depreciable cost.
• C)an estimate of the asset's value at the end of its useful life.
• D)ignored in all the depreciation methods.

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Definitions:

Prove

To establish the truth or validity of something through evidence or argument.

Parol Evidence

Oral or verbal evidence that is not included in the written contract, often discussed in the context of disputes about what the parties agreed upon.

Written Contract

A legally binding agreement that has been formulated in writing and signed by the parties involved.

Parol Evidence

A rule in contract law that prevents parties from presenting extrinsic evidence to alter or add to the terms of a written agreement.