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Username: Andrew

Rating:
Guru Stars

Asked to: Apinya Kamon

Date Created: 22 Nov 2017
Category 28
Tag Financial
Question What is a 'Salvage Value'?
Advice from Guru
Hello Andrew,

Salvage value is the estimated value that the owner is paid when the item is sold at the end of its useful life. The value is used to determine annual depreciation in the accounting records, and salvage value is used to calculate depreciation expense on the tax return. The value is based on an estimate of the asset's value, or the value can be determined by a regulatory body, such as the U.S. Internal Revenue Service (IRS).

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