Question

…….. of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Q: Answer-…….. of an asset is the estimated amount that an entity would currently obtain from disposal of the...

Residual value is The estimated amount an entity would currently obtain from disposing of an asset, after deducting estimated disposal costs, assuming the asset has already reached the age and condition expected at the end of its useful life. It is an important concept in depreciation accounting, because Depreciable amount Cost of asset Residual value It represents the expected scrap or salvage value at the end of useful life.