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What are the terms depreciable value salvage value and estimated life mean?
Wiki User
∙ 9y ago
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.
Wiki User
∙ 9y ago
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What must be known In order to calculate the third years depreciation on an asset using the sum of the years digits method?
Original cost, estimated salvage value, and estimated useful life.
How to compute after tax salvage value?
Salvage Value - [Tax * (Market Value - Book Value)
How do you calculate salvage 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.
The cost of a depreciable asset less accumulated depreciation reflects the book value of the asset?
true
The carrying value of a depreciable asset equals?
The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.
Formula for depreciable cost?
Depreciable Value = Intial Cost - Residual Value
What is the estimated salvage value of a fixed asset?
The estimated salvage value of a fixed asset refers to the expected residual value of the asset at the end of its useful life. It is an estimate of how much the asset could be sold for or its scrap value. This value is important for calculating depreciation expenses and determining the asset's net book value. The specific salvage value can vary depending on factors such as market conditions, technological advancements, and the condition of the asset.
What must be known In order to calculate the third years depreciation on an asset using the sum of the years digits method?
Original cost, estimated salvage value, and estimated useful life.
How a company can manipulate its net income by estimating the longer estimated useful life and salvage value of the fixed?
"http://wiki.answers.com/Q/How_a_company_can_manipulate_its_net_income_by_estimating_the_longer_estimated_useful_life_and_salvage_value_of_the_fixed"
Difference between scrap value and salvage 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.
How to compute after tax salvage value?
Salvage Value - [Tax * (Market Value - Book Value)
How a measured value is reported in terms of known and estimated digits?
Significant Figure.
What is the value of a salvage vehicle?
The value of a salvage vehicle is roughly 60% of the value of a comparable car with a clean title.
How do you calculate salvage 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.
The cost of a depreciable asset less accumulated depreciation reflects the book value of the asset?
true
Is the salvage value of a vehicle the same as its book value?
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.
The carrying value of a depreciable asset equals?
The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.
