Asked by
Claudia Gallifuoco
on Oct 28, 2024
Verified
On January 1,2019,equipment was purchased for $100,000.The equipment's estimated residual value is $20,000,and its estimated useful life is 8 years.On December 31,2019,the book value using the straight-line method of depreciation is $90,000.
Residual Value
the estimated value that an asset will have at the end of its useful life.
Straight-Line Method
A depreciation technique that allocates an equal portion of an asset’s initial cost to each year of its useful life.
Book Value
The net value of an asset calculated as total assets minus total liabilities, shown on the balance sheet.
- Grasp the concepts of residual value, book value, and depreciation expense in asset management.
Verified Answer
MO
Learning Objectives
- Grasp the concepts of residual value, book value, and depreciation expense in asset management.
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