What is the difference between
residual value, salvage value, and scrap value?
The
terms residual value, salvage value, and scrap value are often used when
referring to the estimated value that is expected at the end of the useful life of the property, plant and equipment used
in a business. This estimated amount is used to calculate the asset’s depreciation expense and it is often assumed to be
zero.
terms residual value, salvage value, and scrap value are often used when
referring to the estimated value that is expected at the end of the useful life of the property, plant and equipment used
in a business. This estimated amount is used to calculate the asset’s depreciation expense and it is often assumed to be
zero.
Reference: accountingcoach.com
