Question

Salvage value is: Multiple Choice

Answer 1

Answer:

Option C is the answer - An estimate of the asset's value at the end of its benefit period

Explanation:

Salvage value (also known as scarp value or residual value) is an estimated book amount an asset is worth when its useful life comes to an end. A higher value can be quoted when an asset is sold off before the end of its beneficial life and a zero rating is usually stated when the asset is being used for a longer period of time. Depreciation schedule calculation do have the salvage value as its significant component.