Calculate the salvage value of a tractor with a depreciation value of ₦10,580.00 and initial cost of ₦50,000 after a year of use

A.

₦10,580

B.

₦30,290

C.

₦39,420

D.

₦60,580

Correct answer is C

Salvage value is the estimated book value of an asset after depreciation is calculated.

Salvage value + Depreciation value = Cost price

Salvage value + 10,580 = 50,000

∴ Salvage value = 50,000 - 10,580

⇒ ₦39,420