The value of a depreciable asset at the end of its useful life is called _____.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Scrap value
The scrap value (also called salvage value) is the estimated value of an asset when its useful life is over and it can only be sold as scrap. In the straight line method it is used in
\( \displaystyle \text{Annual depreciation} = \frac{\text{Cost} - \text{Scrap value}}{\text{Useful life}} \)
CBSE Applied Mathematics (Class XII):
Depreciation
