The residual value is directly used for the calculation of depreciation expense under all depreciation methods. The residual value (also known as salvage value) is the estimated value of an asset at the end of its useful life, after it has been fully depreciated. It is subtracted from the asset's original cost to determine the depreciable base. The depreciable base is the portion of the asset's cost that will be depreciated over its useful life, and is used to