Question

With depreciation, the estimated amount of money that can be expected from some buyer at the end of asset’s useful life is its

Answer 1

Salvage value

Step-by-step explanation:

Salvage value is the value of an asset after all depreciation expenses has been expensed.

For example, an asset cost $500,000, it has a 2 year useful life. the depreciation percentage is 20% for each of the useful life of the asset, the salvage value =

Cost of the asset - accumulated depreciation

accumulated depreciation = 2 x($500,000 x 0,2) = $200,000

Salvage value = $500,000 - $200,000 = $300,000

$300,000 is the estimated amount of money that can be expected from some buyer at the end of asset’s useful life