ECONOMICS

Detailed explanation-1: -Salvage value is the estimated value of an asset at the end of its useful life. It represents the amount that a company could sell the asset for after it has been fully depreciated. On the other hand, book value is the value of an asset as it appears on a company’s balance sheet.

Detailed explanation-2: -The residual value, also known as salvage value, is the estimated value of a fixed asset at the end of its lease term or useful life.

Detailed explanation-3: -Salvage value is the amount that an asset is estimated to be worth at the end of its useful life. It is also known as scrap value or residual value, and is used when determining the annual depreciation expense of an asset.

Detailed explanation-4: -A business can determine an asset’s salvage value by subtracting accumulated depreciation from the initial purchase cost.

Detailed explanation-5: -The useful life of an asset is an accounting estimate of the number of years it is likely to remain in service for the purpose of cost-effective revenue generation. The Internal Revenue Service (IRS) employs useful life estimates to determine the amount of time during which an asset can be depreciated.