PRC-1 · Chapter 6 · Question 62 of 100
Assuming estimates do not change, at the end of an asset's estimated useful life, its Carrying Amount will logically be equal to its:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Residual Value
Explanation
By definition, the total depreciation charged over an asset's life equals Cost minus Residual Value. Therefore, the remaining un-depreciated carrying amount exactly equals the Residual Value.
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