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
The correct answer is: C
Explanation
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