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Q: Salvage value is the ______ of an asset after all depreciation has been fully expensed.
  • A. depreciation
  • B. scrap value
  • C. market value
  • D. book value
Correct Answer: Option D - Book value–The amount shown in the account book after allowing the necessary depreciation. • The book value depends upon the amount of depreciation allowed per year and gradually increase year to year and at the end of utility period of property the book value will be only scrap value. Book value = Original cost – Depreciation Scrap value–Value of dismantled materials of a building is defined as scrap value. Market value–The amount which can be obtained at any particular time from open market if property is put on for sale. Depreciation–Depreciation is referred as the reduction in the cost of a fixed asset in sequential order, due to wear and tear until the asset becomes obsolete.
D. Book value–The amount shown in the account book after allowing the necessary depreciation. • The book value depends upon the amount of depreciation allowed per year and gradually increase year to year and at the end of utility period of property the book value will be only scrap value. Book value = Original cost – Depreciation Scrap value–Value of dismantled materials of a building is defined as scrap value. Market value–The amount which can be obtained at any particular time from open market if property is put on for sale. Depreciation–Depreciation is referred as the reduction in the cost of a fixed asset in sequential order, due to wear and tear until the asset becomes obsolete.

Explanations:

Book value–The amount shown in the account book after allowing the necessary depreciation. • The book value depends upon the amount of depreciation allowed per year and gradually increase year to year and at the end of utility period of property the book value will be only scrap value. Book value = Original cost – Depreciation Scrap value–Value of dismantled materials of a building is defined as scrap value. Market value–The amount which can be obtained at any particular time from open market if property is put on for sale. Depreciation–Depreciation is referred as the reduction in the cost of a fixed asset in sequential order, due to wear and tear until the asset becomes obsolete.