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Which of the following is the title given to an asset for its residual value?

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Which of the following is the title given to an asset for its residual value?
1). Diminished
2). Shrink
3). Taper
4). Salvage


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Answered by on | Votes 2 |
  • Salvage value is the title given to an asset for its diminished value.
  • It is defined as the estimated resale value of an asset at the end of its useful life.
  • Suppose ‘A’ buy a car for 5 lakh rupees, after using it for 10 years the car met with an accident and damage is beyond repair. Now A sells it to the junkyard for 10,000. The value of its metal, body and left parts that A gained is termed as salvage value or residual value.

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