salvage value definition

salvage value

Estimated residual value of a depreciable asset or property at the end of its economical or useful life. In all methods for determining depreciation (except the double declining balance depreciation method) salvage value is deducted from the asset's purchase price. When the cost of an asset less its accumulated depreciation equals its salvage value, no more depreciation may be taken.

salvage value is in the Accounting & Auditing and General, Marine, & Life Insurance subjects.

salvage value appears in the definitions of the following terms: life cycle cost, terminal value, capital lease and salvage charges

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