Accounting · Asset Valuation
Which of the following correctly describes the 'value in use' of a two-year-old asset?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The present value of the future cash flows obtainable from the continued use of the asset and its ultimate disposal✓
- 2The cost of an equivalent new asset less two years' depreciation
- 3The amount that could be obtained from selling the asset, less any costs of disposal
- 4The original cost of the asset less two years' depreciation
Correct answer
The present value of the future cash flows obtainable from the continued use of the asset and its ultimate disposal
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