Salvage value is: A. A factor relevant to determining depreciation under MACRS.

ID: 2592010 • Letter: S

Question

Salvage value is:

A. A factor relevant to determining depreciation under MACRS.

An estimate of the asset's value at the end of its benefit period.

A factor relevant to determining depreciation that cannot be revised during an asset's useful life.

Not a factor relevant to determining depletion.

A factor relevant to amortizing an intangible asset with an indefinite life.

A. A factor relevant to determining depreciation under MACRS.

An estimate of the asset's value at the end of its benefit period.

A factor relevant to determining depreciation that cannot be revised during an asset's useful life.

Not a factor relevant to determining depletion.

A factor relevant to amortizing an intangible asset with an indefinite life.

Answer:- Salvage value is:-

(Option B) an estimate of the asset's value at the end of its benefit period.

Explanation:-

Salvage value is:
1. Also known as residual value/ scrap value.

2. An estimate of the asset's value at the end of its benefit period.

3. A factor relevant to determining depreciation.

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