Business Accounting and Bookkeeping

What are the terms depreciable value salvage value and estimated life mean?

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2014-07-17 13:28:52
2014-07-17 13:28:52

Depreciable Value:

It is the value of asset up to which any asset can be depreciated.

Salvage Value:

It is the value which a company can get on sale of fully depreciated asset.

Estimated useful Life:

It is that life of an assets which a company determine at the time of purchase for which an asset can be utilized in business to generate revenue.

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1. Estimated salvage value is the amount which is expected to be received from disposal of fully depreciated asset after useful life of asset.

Salvage Value - [Tax * (Market Value - Book Value)

Salvage value is defined as the value of the product after its useful life .In other words it is the value after depreciation. Salvage value also known as scrap value.

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The value of a salvage vehicle is roughly 60% of the value of a comparable car with a clean title.

NO, salvage value is subjective. The salvage price is usally set by bids. Depends. If it's salvage the price is very subjective. If it's salvage but reconstructed (i.e. roadworthy) it's typically worth 60% of the value of a comparable car with a clean title. Use kbb.com and edmunds.com to determine appx value.

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. The salvage value is used in conjunction with the purchase price and accounting method to determine the amount by which an asset depreciates each period. For example, with a straight-line basis, an asset that cost $5,000 and has a salvage value of $1,000 and a useful life of five years would be depreciated at $800 ($5,000-$1,000/5 years) each year.

There is no set value of a salvage vehicle. Value is based on what they offer.

The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.

No. Software doesn't break down or wear out as you use it and doesn't lose value.

the difference between the asset's cost and accumulated depreciation.

That can never happen. An asset will either be depreciated to its salvage value, or to zero, depending on whether or not it has a salvage value.

A salvage title will reduce the value of an automobile by about 50 percent. However, in some cases, it will reduce the value by 80 percent.

Typically the value is 20% of the vehicle's value without salvage.

Salvage value is an estimate of the value of property at the end of its usefulness. It's the price that you'd get for it when you can't use it productively. How you use the property and for how long affect salvage value. If you let go of property while it's still in good operating condition, then the salvage value might be high. If you let go of property when it's not usable, its salvage value is its junk value. For more information, go to www.irs.gov/formspubs for Publication 534 (Depreciating Property Placed in Service Before 1987).

To determine the salvage value of farm equipment for financial purposes, such as taxes, you may need to have it appraised. An appraiser needs to look at the equipment and determine what it is worth for resale as salvage.

You didn't complete the question that is probably from your accounting homework. Without the complete question and information it cannot be answered correctly.

A salvage car or truck, once restored to roadworthy condition is worth roughly 60% of the value of a comparable vehicle with a clean title.

If it's still salvage about 20% of the value of a comparable clean titled car. If it's reconstructed/roadworthy about 60%

Archimedes estimated the correct value of pi

Any vehicle, whether a total loss or not, has a value. A totaled vehicle, of course, has a significantly lesser value (assuming the actual total loss has already been settled with the vehicle owner). This value can be anywhere from 5 - 25% of the pre-loss value of the vehicle. If you decide to keep a totaled vehicle after settling with an insurance carrier, they can legally remove the salvage value from your settlement. It shouldn't be much, and you can request that they actually get a salvage quote from a salvage yard. The idea behind this is that you can't legally profit from a loss. In your case, if your totaled vehicle has a salvage value, and you're keeping the vehicle, the insurance carrier must deduct that salvage value. Otherwise, you will get a full settlement, and still retain a vehicle with some value. But...try working with the carrier on what that salvage amount is going to be. Sometimes they'll adjust it to get the loss settled, since you never "really" know what the salvage value is going to be until the vehicle is sold at a salvage yard auction.

Salvage vehicle value is highly subjective but if the car was properly reconstructed and is roadworthy it is worth roughly 60% of a comparable clean titled car. Go to nada.com to get an idea of the car's value. If it's salvage but not roadworthy, maybe 25% of the value of a comparable clean titled car.

daily enterprise purchasing 10.0 million machine. It will cost 50,000 to transport and install the machine. the machine has a depreciable life of 5 year and will have no salvage value If daily use straight-line depreciation what are the yearly depreciation expense associated with this machine?


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