Calculate the salvage value of a tractor with a depreciat...
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
₦10,580
₦30,290
₦39,420
₦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
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