Question
Download Solution PDFSalvage value is the ___________ of an asset after all depreciation has been fully expensed.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFConcept:
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 component in the calculation of a depreciation schedule.
- Salvage value is the book value of an asset after all depreciation has been fully expensed.
- In general, the salvage value is important because it will be the "carrying value" of the asset on a book after depreciation has been fully expensed.
- It is based on the value a company expects to receive from the sale of the asset at the end of its useful life. In some cases, salvage value may just be a value the company believes it can obtain by selling a depreciated, inoperable asset for parts.
Important Points
Scrap value:
- Scrap value is the value of dismantled materials of a property at the end of its utility period, and absolutely useless except for sale as scrap.
Last updated on May 28, 2025
-> SSC JE notification 2025 for Civil Engineering will be released on June 30.
-> Candidates can fill the SSC JE CE application from June 30 to July 21.
-> The selection process of the candidates for the SSC Junior Engineer post consists of Paper I, Paper II, Document Verification, and Medical Examination.
-> Candidates who will get selected will get a salary range between Rs. 35,400/- to Rs. 1,12,400/-.
-> Candidates must refer to the SSC JE Previous Year Papers and SSC JE Civil Mock Test, SSC JE Electrical Mock Test, and SSC JE Mechanical Mock Test to understand the type of questions coming in the examination.
-> The Staff Selection Commission conducts the SSC JE exam to recruit Junior Engineers in different disciplines under various departments of the Central Government.