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An asset was originally purchased by sampson corp. for $260,000. the depreciable amount was determined to be $209,000, with an eight-year useful life. given this information, the residual value of this asset isselect answer from the options below

a. $35,000.
b. $58,625.
c. $51,000.
d. $26,125.

User Amenhotep
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1 Answer

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Final answer:

The residual value of the asset purchased by Sampson Corp. for $260,000 with a depreciable amount of $209,000 is $51,000, which is calculated by subtracting the depreciable amount from the purchase price.

Step-by-step explanation:

The residual value of an asset is the estimated amount that an entity can obtain from disposing of the asset at the end of its useful life after deducting any expected costs of disposal. In this case, Sampson Corp. originally purchased an asset for $260,000 and the depreciable amount is $209,000 over an eight-year useful life.

To find the residual value, you subtract the depreciable amount from the original purchase price:

Residual Value = Original Purchase Price - Depreciable Amount

Residual Value = $260,000 - $209,000

Residual Value = $51,000

Therefore, the correct answer is c. $51,000.

User Miga
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