Asked by saurav basnet on Jun 20, 2024
Verified
The carrying amount of an asset is the original cost less anticipated residual value.
Carrying Amount
The book value of an asset or liability on a company's balance sheet, reflecting its original cost adjusted for factors such as depreciation or amortization.
Anticipated Residual
The estimated value of an asset at the end of its useful life, taking into account depreciation and wear.
- Calculate the carrying amount of an asset and understand its components.
Verified Answer
AA
Ahmad AbboudJun 24, 2024
Final Answer :
False
Explanation :
The carrying amount of an asset is the original cost less accumulated depreciation and any accumulated impairment losses, not just the anticipated residual value.
Learning Objectives
- Calculate the carrying amount of an asset and understand its components.