Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 40)
Which of the following statements best describes the purpose of calculating the depreciation expense up to the date of disposal?
To avoid paying taxes.
To determine the asset's current market value.
To determine the asset's net book value.
To determine the asset's salvage value.
Explanation
Calculating depreciation up to the disposal date provides an accurate net book value.
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