ECONOMICS

Detailed explanation-1: -The sale value of useless asset is called residual value or scrap value.

Detailed explanation-2: -Scrap value is the worth of a physical asset’s individual components when the asset itself is deemed no longer usable. After a long-term asset-such as machinery, vehicle, or furniture-has gone through its useful life, it may be disposed of. Scrap value is also known as residual value, salvage value, or break-up value.

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: -Determine the cost of the asset. Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. Determine the useful life of the asset. Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount.

Detailed explanation-5: -Asset retirement is the removal of an asset or part of an asset from the asset portfolio. This is called asset retirement or asset scrapping. Organizational considerations or the business transaction leads to the retirement.