Depreciable cost is computed as: a

Accounting May 21, 2021

Depreciable cost is computed as:

a. market value less residual value

b. cost less accumulated depreciation

c. book value less residual value

d. cost less residual value

Expert Solution

Depreciable Cost is computed as follows:

Depreciable Cost = Cost-Residual Value

For example as asset cost $750,000 and has a salvage value of $50,000. The useful life of asset is 7 years. So, Depreciable cost is computed as follows:

Depreciable Cost = Cost - Residual Value

= $750,000-$50,000

Depreciable Cost = $700,000

The correct option is D "cost less residual value".

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