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SALVAGE VALUE is:

a) Realizable value of a fixed asset after deducting costs associated with its sale b) Scrap value or the value to a junk dealer c) The amount remaining after all depreciation has been deducted from the original cost of a depreciable asset.

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تم إضافة السؤال من قبل Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed
تاريخ النشر: 2014/09/06
Divyesh Patel
من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Answer is C.

عصام الدين حامد العبيد حامد
من قبل عصام الدين حامد العبيد حامد , Finance Manager , Arab Academy for Specail Education

Definition of 'Salvage Value' The estimated value that an asset will realize upon its sale at the end of its useful life. The value is used in accounting to determine depreciation amounts and in the tax system to determine deductions. The value can be a best guess of the end value or can be determined by a regulatory body such as the IRS.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

In its broader sense  all the answers  are true in respect of Salvage value. 

 

Salvage Value: Definition

Estimated Residual value of a Depreciable asset or property at the end of its economical or useful life.  In all methods of determining depreciation (except the double declining balance depreciation method) salvage value is deducted from the asset’s purchase price.  When the cost of an asset less its accumulated depreciation equals its salvage value.

Estimated residual value means:

Estimated present value of after-tax cash flow expected to be earned after the forecast period.

Estimated fair market value of a leased asset at the end of the lease term.

Estimated scrap value of an asset at the end of its economic or useful like.

 

Estimated value of a firm at the point where its owners will earn only the minimum required rate of return.

FITAH MOHAMED
من قبل FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

b) Scrap value or the value to a junk dealer

Khaled Mohee Eldeen Abbas Mahmoud
من قبل Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

thanks to all of you. the right answer is C and the key of choosing it "after all depreciation has been deducted from the original cost" which it means the end of its useful life.

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

c) The amount remaining after all depreciation has been deducted from the original cost of a depreciable asset.

 

Estimated residual value of a depreciable asset or property at the end of its economical or useful life. In all methods for determining depreciation (except the double declining balance depreciation method) salvage value is deducted from the asset's purchase price. When the cost of an asset less its accumulated depreciation equals its salvage value, no more depreciation may be taken.

c) The amount remaining after all depreciation has been deducted from the original cost of a depreciable asset.

Sara Khan
من قبل Sara Khan , financial and admin assistant , Ministry Of Defence

Thanks for inviting me.Option C is answer.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

a) Realizable value of a fixed asset after deducting costs associated with its sale

Mohamed Esam Mohamed Kamel
من قبل Mohamed Esam Mohamed Kamel , Financial Analyst , Egyptian Water & Wastewater Regulatory Agency (EWRA)

Salvage value is:The estimated residual value of an asset at the end of its economical or useful life. salvage value is deducted from the asset's purchase price. When the cost of an asset less its accumulated depreciation equals its salvage value, no more depreciation may be taken.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

Answer c is correct