The book value of an asset that was DDB depreciated over a 10 year period was $5832 at the end of year 4 If the first cost of the asset was $80,000, the salvage value that was used in the depreciation calculation was closest to (a) $0 (b) $2000 (c) $5000 (d) $8000 ...

The book value of an asset that was DDB depreciated over a 10-year period was $5832 at

Question:

The book value of an asset that was DDB depreciated over a 10-year period was $5832 at the end of year 4. If the first cost of the asset was $80,000, the that was used in the depreciation calculation was closest to:
(a) $0
(b) $2000
(c) $5000
(d) $8000

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...