Question

Scrap value of an asset means the amount that it can fetch on sale at the _______ of its useful life:

• A. beginning
• B. end
• C. middle
• D. none

Answer 1

Answer: (B)

end

Scrap value of an asset means the amount that it can fetch on sale at the end of its useful life. It is the value of the asset when its sold and is no longer useful. It helps in calculating depreciation on the asset as the formula is :-

depreciation = Value of asset - scrap value

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useful life of an asset