- 1 Marks
Question
What is the cost of an asset or other amount substituted from costs, less its residual value?
Answer
Depreciable Amount/Value
Explanation: The depreciable amount is calculated as the asset’s original cost minus its residual value (the estimated value at the end of its useful life). This amount is used as the basis for calculating depreciation over the asset’s useful life.
- Tags: Asset Valuation, Depreciation, Residual Value
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2014
- Uploader: Theophilus